Posh New York City Suburb to Tap Bond Market for $189 Million

(Bloomberg) -- Westchester County plans to issue roughly $189 million in general obligation bonds, with Fitch Ratings giving the debt a top-tier AAA rating.

The affluent enclave, home to New York City suburbs like Scarsdale and Rye, will use the proceeds from the sale expected in February for various capital improvements, according to Fitch. In December, the county’s legislators passed a $2.5 billion budget for the 2025 fiscal year, earmarking $373 million to improve housing, environmental facilities and roads and bridges.

Fitch analysts, led by Margot Johnston, said in a December report that recent gains in biotech, health care and retail are boosting the county’s economic profile.

Morgan Stanley is renovating its corporate campus in Harrison, which is expected to create about 2,700 permanent jobs, according to Fitch. Also in Harrison, NRP Group is building a 200-unit luxury apartment complex, while Hastings-on-Hudson is getting a $121 million film and TV production studio covering over 245,000 square feet.

“The tax base is experiencing an uptick in residential and commercial development throughout the county particularly in Harrison, Ossining, Sleepy Hollow and Hastings-on-Hudson,” the Fitch analysts wrote. “County officials expect full property values to see continued growth reflecting residential housing price appreciation and ongoing expansion in the local economy.”

Westchester County will issue the debt in three series, with most of the debt being tax-exempt general-obligation bonds. About $29.9 million of the bonds are expected to be taxable, Fitch said in the note. The deal is expected to sell competitively the week of Feb. 3.