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THE BUFFALO NEWS
Credit rating posts gains in scores from two agencies
Updated: May 11, 2010, 7:01 am
Published: May 11, 2010, 12:30 am
Two credit-rating agencies have upgraded Erie County’s credit score as they go to a “global-rating” system that assesses municipal borrowers alongside borrowers from the private sector.
With Fitch Ratings’ recalibration, the county moves up two notches, from BBB-plus to A.
A recalibration by Moody’s Investors Service last month placed Erie County at A2, up three notches from Baa2.
Ever since the mid-decade budget meltdown, Erie County officials have worked to improve their credit rating because it’s an indicator of financial health and affects the rate at which the government can borrow money.
In recent years, the state-appointed control board monitoring Erie County finances has insisted upon using its still-better credit rating to borrow on the county’s behalf.
The global system will lift the scores for many municipal borrowers because they rarely default, especially in New York, said Erie County Comptroller Mark C. Poloncarz.
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