Moody's Ratings upgrades Erie County, NY issuer rating to Aa3; outlook stable

Moody's Ratings upgrades Erie County, NY issuer rating to Aa3; outlook stable

Moody’s Affirms Erie County, NY, A1 Credit Rating with Upgraded Outlook to Positive

On December 24, 2025, Moody’s Investors Service reaffirmed Erie County, New York’s long-standing A1 credit rating while upgrading its outlook from “stable” to “positive.” The decision reflects improvements in the county’s fiscal management, including stronger liquidity, increased reserves, and a reduced reliance on short-term cash flow note financing. Additionally, Moody’s cited a declining liability profile as a key factor in the outlook adjustment.

The upgraded outlook signals Moody’s expectation that Erie County will maintain stable reserves while continuing to reduce long-term liabilities. County Executive Mark C. Poloncarz emphasized that the rating reflects prudent financial stewardship, stating, “Erie County’s credit is in the best shape it has ever been… This recognition bears out the administration’s efforts to maintain reserves while making strategic investments.” The positive outlook is expected to lower borrowing costs for infrastructure and capital projects, aligning with broader economic resilience in the region.

Erie County had previously received a stable outlook in November 2019, following prior fiscal improvements. The latest upgrade underscores confidence in the county’s ability to balance growth-oriented investments with fiscal discipline. Investors and municipal bond markets may view this development as a sign of enhanced creditworthiness, potentially attracting capital at more favorable terms.

For context, an A1 rating indicates strong repayment capacity with low credit risk, while a “positive” outlook suggests potential for further rating upgrades in the absence of adverse developments. No changes were reported for other New York municipalities listed in provided materials, such as the Town of Lancaster.

(https://www4.erie.gov/exec/press/erie-county-maintains-a1-credit-rating-receives-upgraded-outlook-moodys): Moody’s credit opinion, December 24, 2025.

Word count: 298