March 4, 2013 / 4:36 PM / 5 years ago

S&P cuts Saugerties, NY GO bond rating two notches to A-minus

March 4 (Reuters) - 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.

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