Albany's Bond Ratings


By DIA, Section News
Posted on Tue Jun 17, 2008 at 05:45:39 AM EST

Some of Albany's bonds are going to be downgraded in the near future. Why? Well, this was Moody's take on the bonds back in 2006.
MOODY'S ASSIGNS A3 RATING TO CITY OF ALBANY'S (NY) $26M G.O. BONDS, SERIES 2006 ADEQUATE RESERVE POSITION; AUGMENTATION OF RESERVES IN FISCAL 2004 SUPPORTED BY BORROWING PROCEEDS Moody's believes the city's financial position will remain sound, given augmentation of reserves in fiscal 2004 and expected favorable results in fiscal 2005. General Fund balance is expected to increase to $14.8 million, equivalent to 10.1% of General Fund revenues. The city's unemployment rate of 4.4% (February 2006) remains below state (5.2%) and national levels (5.1%).
Now Moody's is a joke of a company and they are on the take. As we can see their ability to predict the future finances of the city of Albany is pretty much dead wrong. Meanwhile, I've pretty much nailed it as a part time blogger. Anyway, unless "augmentation" means "spend all your reserves and borrow even more", they were wrong. The city now has no General Fund balance and as we all know, results have not been favorable. So, one more cost of having Jennings' be our mayor will be lower bond ratings which means higher interest payments.

At some point we have to stop digging in the hole.

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Albany's Bond Ratings | 2 comments (2 topical, 0 hidden)
No Joke (none / 0) (#1)
by A Muse on Wed Jun 18, 2008 at 06:06:16 PM EST
Moody's, Weiss, Fitch, S&P, A.M.Best are unfortunately not a Joke.  I used their ratings with my clients for years.  I depended on their honesty and care in reporting ratings.  None of the ratings are now worth the paper they are printed on.  None.  As for the City of Albany it would not surprise me to see file bankruptcy at some point in the future.  I do not things are that poor, however, they are close.  It may be an advantage to do so.  The infrastructure of the City has declined and the City still has no plan for anything.  When Jennings leaves it will still have no plan.  Where are the 3 or 5 and 10-year plans.  The only thing that is certain is Jennings will be lifting and lowering himself on his toes every time he is on camera.  He is just moving my money down further in his pocket.  What nationality is he now anyway?  Is he one of the Irish Orangemen?  I hope not.  Albany is in a far worse situation than anyone has painted for the citizens.  Even the best and the brightest will have a hard time justifying not moving out within a year or so unless there is a dramatic change in leadership.  

The unemployment figures are incorrect (none / 0) (#2)
by jackknight on Fri Jun 20, 2008 at 08:44:37 PM EST
as well because most people are denied unemployment to make the figures smaller. Most of those judges are paid off, too.  Looks like the only money Albany will be getting will be from the three stooges: Murder, Inc., Goodfellas, and the gay mob.  Ooooops, the city won't be getting that money, but the cops and politicians will.

Albany's Bond Ratings | 2 comments (2 topical, 0 hidden)
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