NY's Suffolk County legislature approves note sale

Reuters News
Posted: Mar 13, 2012 10:18 PM
NY's Suffolk County legislature approves note sale

By Joan Gralla

(Reuters) - The legislature of Suffolk County, New York approved a $90 million short-term note sale on Tuesday that the county executive says is needed to keep the county from running out of cash in April.

A spokesman for the Democratic-led legislature said the county was struggling to fix its finances after years of mismanagement, and had approved the sale of revenue anticipation notes to fund ongoing operations.

Democratic County Executive Steve Bellone, who took office in January, last week declared a fiscal crisis after a report he commissioned estimated a three-year $530 million deficit.

Suffolk County, whose beaches, mansions and parties draw the world's wealthy in the summer, makes up Long Island's eastern half.

Moody's Investors Service on Monday cut Suffolk County's credit rating two notches to A1. Although Moody's said the county's debt was manageable, it has a negative outlook.

Standard & Poor's said on Tuesday that it may cut its credit rating for New York's Suffolk County from AA because of deteriorating liquidity and poor finances.

(Reporting By Joan Gralla; Editing by Chris Lewis)