By JOHN T. WARD
Here’s a preview of the Red Bank borough council’s agenda for its semimonthly meeting Wednesday night:
Wall Street debt-rating agency Moodys may take a negative view of Red Bank’s fiscal situation, but investors don’t, town officials said Tuesday night.
Councilman Mike DuPont, who heads the borough’s finance committee, said investors had snapped up $5.4 million worth of bonds offered in a recent refinancing. The followed Moody’s report at the end of October, which said that its Aa3 rating on $25.2 million worth of general-obligation bonds could be downgraded if recent fiscal strain continues.
Wall Street debt-rating agency Moody’s has raised concerns about Red Bank’s $25.2 million worth of general-obligation bonds.
In a announcement posted on its website late last Friday, Moody’s affirmed its prior Aa3 rating on the debt, but revised its outlook to “negative,” citing a drop in the town’s current-fund balance to 2.14 percent of revenue in 2010, from 9.14 percent in 2007.
The agency indicated that a downgrade of the debt could follow if “recent fiscal strain” continues.