East Hampton Village is in strong fiscal health and will likely remain so despite the economic shutdown caused by the pandemic, according to a recent credit analysis from Moody’s Investors Service, which gave the village an Aa1 bond rating, the company’s second highest.
The firm cited the village’s “solid” management, property tax base, and available funds and reserves. The economic vitality of municipalities dependent on tourism and hospitality are at risk because of the pandemic, the report noted, “however, the village has maintained a solid level of activity since many second-home owners and long-term renters have relocated to the village from other areas, particularly New York City, to work during the Covid-19 outbreak.”
Despite the optimistic outlook, Moody’s cautioned that “the situation surrounding coronavirus is rapidly evolving and the longer-term impact will depend on both the severity and duration of the crisis.”