South Amboy, N.J. GO Bond Rating Raised To 'A+' From 'A-' On Stronger Financials; Outlook Stable

NEW YORK (S&P Global Ratings) Dec. 6, 2018--S&P Global Ratings raised its 
long-term and underlying ratings to 'A+' from 'A-' on South Amboy, N.J.'s 
general obligation (GO) bonds outstanding. The outlook is stable. 

"The upgrade reflects our view that the city has effectively restored 
structural fiscal balance, as demonstrated by strong recent financial 
performance and decreased reliance on emergency borrowing," said S&P Global 
Ratings credit analyst John Kennedy. "Several years of consecutive positive 
operating results have built reserves to a level we consider strong."

Partially offsetting the credit quality effects of stronger financial 
performance is the city's high debt, pension, and other post-employment 
benefits burden.

"The stable outlook reflects our expectation that South Amboy will likely 
maintain, at least, adequate performance and budgetary flexibility," added Mr. 
Kennedy. "In addition, we believe the district's strong economy with access to 
the New York MSA provides additional rating stability. Therefore, we do not 
anticipate changing the rating within the two-year outlook horizon."