Moody's Reverses Red Bank's Negative Outlook

Following a reported five-hour conference call between Red Bank CFO Colleen Lapp and Moody's Investors Service to discuss the borough's finances, the bond credit rating service has revised the borough's outlook from negative to stable.

Red Bank has maintained an Aa3 credit rating, though several months ago Moody's gave Red Bank a negative outlook because of its narrow fund balance and high fixed costs, including debt service, among other reasons. 

Councilman Mike DuPont announced the move earlier this week, crediting Lapp, as well as the borough's efforts in restructuring debt and staying current with its pension payments for the revision in its outlook.

According to Moody's, Red Bank's Aa3 rating is a reflection of its large tax base, wealth and average debt burden. The stable outlook, it explains in its summary of Red Bank's rating, reflects the borough's improved financial position with greater structural balance and reserves.