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NorthvaleGreen Risk

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6818fc 2d0083cbf907485ea120a0c0a1ba8cd2

BID #: N/A

ISSUED: 3/30/2022

DUE: TBD

VALUE: TBD

100

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Executive Summary

This press release from the Borough of Northvale announces that S&P Global Ratings has upgraded the borough's credit rating to 'AA-' with a stable outlook, revising it from a previous negative outlook. This upgrade reflects the borough's restored fund balance, positive operating results in 2021, and the completion of an asset sale, providing budgetary flexibility. The improved rating is expected to lower interest rates on future debt issues, benefiting core infrastructure projects and capital requirements.

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Document Text

--- Document: 6818fc 2d0083cbf907485ea120a0c0a1ba8cd2 Document ---
Borough of Northvale 
Patrick Marana, Mayor 
116 Paris Avenue 
Northvale, N.J.  07647 
(201) 767-3330, Ext. 219 
fweston@northvalenj.org 
 
PRESS RELEASE 
--For Immediate Release 
March 30, 2022 
 
S&P GLOBAL UPGRADES NORTHVALE'S CREDIT RATING 
 
In a report that was published Monday, S&P Global Ratings revised its outlook to stable from 
negative and affirmed its 'AA-' rating on Northvale, N.J.’s general obligation bonds. An AA rating = 
Investment Grade – Very strong capacity to meet financial commitments.  
 
Quoting the report, “The outlook revision reflects the borough's 2021 fund balance restoration, return 
to positive operating results, and completion of an asset sale that should provide additional budgetary 
flexibility”.  
 
“Following several years of steep fund balance declines, unaudited results for fiscal 2021 show 
available reserves rebounded strongly to levels that provide ample budgetary flexibility and support 
the current rating level. We view this recovery as especially important for credit quality. Officials are 
financially transparent and plan to use large one-time revenues from an asset sale and federal relief 
programs to moderate tax increases over the next several years and are in the process of creating 
plans to avoid imbalances following the depletion of these funds”.  
 
Mayor Pat Marana stated: 
 
“I was pushing to have the negative outlook upgraded. Once categorized as such, it is usually a two 
year designation. With hard core facts, we persuaded S&P Global to upgrade us after only one year. 
That’s a mini coup that is rare in the world of municipal credit reviews. This outcome is confirmation, 
from outside professionals, that the Borough has turned the corner financially”. 
 
“The credit upgrade is important in that it reduces taxes for all of us. It makes Borough debt issues 
more attractive to the bond market and results in lower interest rates. We have annual capital 
requirements for core infrastructure projects such as roads repaving, building maintenance, and 
expensive DPW, Fire Department and Ambulance Corps equipment that must be financed. Our costs 
just dropped”.