“Moody’s has withdrawn the Town of Ramapo’s bond rating due to a lack of audited financial statements from 2015, the investors service firm announced Wednesday.
Moody’s said the decision to dump the town’s A3 bond rating was taken “because it believes it has insufficient or otherwise inadequate information to support the maintenance of the ratings.” The company said the action affects approximately $138 million in debt.
Klein said the town dropped its auditor, PKF O’Connor Davies, last summer.
The Mamaroneck-based firm and one of its senior partners agreed last October to pay more than a half-million dollars in penalties for issuing fraudulent reports in connection with municipal bonds sought by Ramapo for the construction of its baseball stadium.
William Weber, who ran unsuccessfully for Ramapo Town Board last fall, said the lack of a rating, or a future downgrade, would result in the town needing to pay higher interest rates on borrowed funds.
“Guess who will be paying that extra money,” Weber said. “Yup, we the taxpayers of Ramapo.”
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