Fitch Ratings, a global credit rating agency, has upgraded Suffolk County’s bond rating from AA- to AA with a stable outlook, citing the county’s budgeting practices as well as technology and oversite infrastructure improvements following the 2022 cyber attack.
A higher credit rating could allow the district to borrow at lower interest rates, lowering borrowing costs and saving taxpayers money on bonds and other financing.
“Since then [2022 cyberattack] incident, the district has instituted significant improvements in technology-related infrastructure and its supervision, including the hiring of a full-time, onsite Chief Information Security Officer, helping to reduce future attacks,” said Fitch in a report.
The bond renewal — the fifth during Suffolk County Executive Ed Romaine’s term, which begins in January 2024 — follows changes the county has made to improve cybersecurity practices. In September 2022, the county experienced what security experts consider to be one of the most disturbing cyber attacks ever targeted at a US municipality. The attack required millions of dollars in recovery efforts, including vulnerability testing and the implementation of new defenses.
“A district of this size should never have been vulnerable to such an attack, especially without insurance to help with recovery,” Romaine said in a news release about Fitch’s upgrade. “I want to thank the district’s leadership and information technology staff for their dedication to protecting taxpayer services and information.”
The Fitch report also cited the district’s budget practices and maintaining reserve funds.
“The ‘AA’ rating also reflects the district’s sound liquidity and overall reserve levels reflecting strong revenue performance and new management’s conservative budget assumptions,” Fitch said in the report.
“Conservative budgeting means preparing for the future, and Suffolk County has done its best to maintain a sustainable budget, even in these difficult financial times,” Romaine said.
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Award-winning journalist and published author, Adina Genn has covered Long Island for more than 20 years. His work has appeared in The New York Times, Costco Connections, Newsday, AOL Patch and more. He is the author of several books, including “Everything I Know About Business I Learned at McDonald’s” (McGraw Hill), and “So You Want to Franchise Your Business” (Entrepreneur Press). Adina is a new member of the Association of Healthcare Journalists. His work has been recognized by the Press Club of Long Island, the Fair Media Council, the New York State Associated Press Association, and other organizations. Adina can reach the [email protected] or at (631)-913-4241.. [email protected].