Moody’s upgrades City of Poughkeepsie negative outlook to stable

POUGHKEEPSIE – Moody’s Investor Service upgraded Poughkeepsie’s “negative outlook” bond rating to “stable outlook.”
The bond rating agency retained the city’s Ba1 rating “reflecting the city’s ongoing weak financial position marked by negative fund balance and a very narrow cash position.” Moody’s also said the rating “takes into account the above average fixed cost burden, moderately sized tax base which continues to contract, low resident incomes relative to the region and recent significant tax increase for fiscal 2017.”
The improved outlook is an indication that his administration’s policies are being viewed favorably by the markets, said Mayor Robert Rolison.
“It’s a validation of decisions that we have made since the being of 2016 that showed the city’s fiscal situation in a positive light,” the mayor said.
Rolison pointed to the recent consolidation of the city bus service with Dutchess County’s transit system, the city’s earning of $3 million in special assistance from the state’s Financial Restructuring Board, “and our ability to resolve long-outstanding collective bargaining issues with the various city-employee unions.”
City Finance Commissioner Marc Nelson said while the removal of the negative outlook “is a huge deal,” it must be noted that the city still faces a $12.5 million general fund deficit. But, he said the Moody’s action is “a real vote of confidence in the direction in which this mayor is leading our city.”