Rating Action: Moody's assigns Aa1 to Carmel, NY's GO bonds and MIG 1 to Bond Anticipation NotesGlobal Credit Research - 31 Aug 2022New York, August 31, 2022 -- Moody's Investors Service has assigned a Aa1 general obligation limited tax (GOLT) rating to the Town of Carmel, NY's $2.5 million Public Improvement (Serial) Bonds, 2022 and a MIG 1 short-term rating to the town's $14.9 million Bond Anticipation Notes, 2022. Concurrently, Moody's has affirmed the Aa1 rating on the town's outstanding GOLT debt and its Aa1 issuer rating. The issuer rating is equivalent to the town's hypothetical general obligation unlimited tax (GOULT) rating; there is no debt associated with this security. Following the issuance, the town will have approximately $51.6 million in outstanding general obligation debt.RATINGS RATIONALEThe Aa1 issuer rating reflects the town's moderately-large tax base with above-average resident wealth and incomes, healthy financial position with historically stable reserves, manageable debt burden, average pension liabilities and growing OPEB liabilities.The absence of a distinction between the GOLT rating and the issuer rating reflects the town's ability to override the property tax cap and the full faith and credit pledge in support of debt service.The MIG 1 rating reflects the long-term credit quality of the anticipated take-out of the town, currently rated Aa1. Additionally, the rating reflects a history of strong market access for notes for local governments in New York.RATING OUTLOOKOutlooks are typically not assigned to local government issuers with this amount of debt outstanding.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS- Material and sustained growth in the tax base and improved resident wealth and incomes- Decline in the long-term liabilities of the town, particularly the unfunded OPEB liability- NA (short-term)FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS- Material contraction of the tax base and deterioration of resident wealth and incomes- Significant and sustained draws on reserves resulting in a weakened financial position- Material and unsustainable increase in long-term liabilities- Downgrade of the town's issuer rating (short-term)LEGAL SECURITYDebt service on the bonds and notes are supported by the town's ad valorem taxing power, subject to limitations from the Property Tax Cap Legislation (Chapter 97 (Part A) of the Laws of the State of New York, 2011).USE OF PROCEEDSProceeds from the 2022 bonds will be used to redeem a portion of the town's Bond Anticipation Notes, 2021. Proceeds from the 2022 Notes will be used to redeem a portion of the town's Bond Anticipation Notes, 2021 with the remainder financing various capital improvements across the town.PROFILEThe Town of Carmel is located in Putnam County, NY (Aa1) approximately 60 miles north of New York City. The town encompasses approximately 36 square miles and is primarily suburban and residential in nature. As of 2020, the town's population stood at 34,236.METHODOLOGYThe principal methodology used in the long-term ratings was US Local Government General Obligation Debt published in January 2021 and available at https://ratings.moodys.com/api/rmc-documents/70015. The principal methodology used in the short-term rating was Short-term Debt of US States, Municipalities and Nonprofits Methodology published in July 2020 and available at https://ratings.moodys.com/api/rmc-documents/67339. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of these methodologies.REGULATORY DISCLOSURESFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found on https://ratings.moodys.com/rating-definitions.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the issuer/deal page for the respective issuer on https://ratings.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://ratings.moodys.com/documents/PBC_1288235.Please see https://ratings.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the issuer/deal page on https://ratings.moodys.com for additional regulatory disclosures for each credit rating. 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