Moody’s Ratings Assigns MIG1 to City’s Notes, Affirming Aa2 Rating
Moody’s Ratings (Moody’s) has assigned a MIG 1 rating to the City of New Rochelle, NY’s approximately $40.99 million Bond Anticipation Notes, 2025. In addition, Moody’s has affirmed the City’s Aa2 issuer rating and general obligation limited tax (GOLT) rating. Following the sale, New Rochelle will have roughly $209 million in long-term GOLT debt outstanding.
Moody’s Ratings noted that the MIG 1 rating reflects the City’s strong underlying credit quality, reflected in its Aa2 issuer rating, healthy liquidity, and demonstrated history of market access. New Rochelle has maintained the rating of Aa2 since 2017.
The Aa2 issuer rating is supported by New Rochelle’s solid and rapidly expanding local economy. Over the past five years, the City’s full value has increased from $9.2 billion to $11.3 billion, raising full value per capita to a robust $140,002. This growth is driven largely by significant development activity in the downtown area, which continues to strengthen the economic base.
While the City has a long track record of stable and responsible financial operations, it experienced an unusual decline in 2024 driven by several one-time factors. The City expects reserves to begin rebuilding by the close of fiscal 2025 and continue strengthening into 2026 as these temporary impacts subside. The city recognizes that restoring reserves to their historical levels is important for maintaining a strong long-term credit profile, and is committed to achieving that goal.
“Moody’s assessment reflects the underlying strength of New Rochelle’s economy and our commitment and plan to restore our financial position following an unusually challenging year,” said Wilfredo Melendez, City Manager of New Rochelle. “Our proposed 2026 budget demonstrates this commitment by focusing on rebuilding reserves and avoiding the use of unassigned fund balance. With major development projects continuing to advance and our fiscal strategies taking hold, we remain confident in the City’s long-term financial stability and our ability to deliver high-quality services to the community.”
Please see https://ratings.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.