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Niskayuna rating is lowered
Published 7:51 p.m., Thursday, September 20, 2012
  

NISKAYUNA — Citing a shrinking surplus and "above-average" debt of $84.4 million, Moody's Investors Service has downgraded Niskayuna Central School District's bond rating.

The drop to Aa3 from Aa2 reflects the district's "recently narrowed reserve levels with the expectation that these levels will be maintained over the near term," according to a Moody's news release.

The district did not return calls Thursday seeking comment.

The release cites the district's "smaller tax base combined with an above-average debt burden that remains elevated despite building aid support."

Moody's said its report doesn't factor in the district's nearly $9 million in outstanding debt.

For the rating to go back up, Moody's said the district needs to balance its operations for a rise in general fund reserves that would help improve its fiscal situation.

The news Thursday from Moody's isn't all bad.

The ratings agency said the municipality's above-average wealth level, a stable local economy that benefits from multiple large employers and its proximity to Albany are strengths.