March 4 Standard & Poor's Ratings Services on
Monday cut Saugerties, New York's general obligation bond rating
by two notches to A-minus from A-plus, with a negative outlook.
The rating cut reflects Saugerties's worsened financial
position, along with negative general fund reserves at the end
of fiscal 2011 and an additional deficit that is expected in
fiscal 2012, said S&P analyst Lindsay Wilhelm in a statement.
"The negative outlook reflects S&P's opinion of the town's
vulnerable financial condition, which is likely to continue for
at least the next two years as the safety net costs are phased
out of the town's budget and tax levy," S&P said.
S&P was also concerned that the town's weak fund balance
leaves it vulnerable to unexpected budget events.