Bayonne Mayor Jimmy Davis has announced that Moody’s Investors Services has upgraded two of the City’s financial ratings from A3 to A2.  The two improved ratings cover what are called GOULT (general obligation) and lease ratings.

According to a statement from Moody’s, “City management has taken strong steps to improve Bayonne’s finances.  The upgrade to A2 recognizes that revenue growth derived from in the city’s expanding tax base will be sufficient to help it weather the loss of certain non-recurring revenues beginning in 2025.” 

Moody’s continued, “These non-recurring revenues have buoyed Bayonne’s financial position for years, but the city is poised to manage its budget in a more sustainable manner going forward.”  

Debt service on the general obligation bond rating is supported by Bayonne’s property taxes. The lease rating refers to Bayonne Department of Public Works Garage Project Bonds.  Those bonds were issued by the Hudson County Improvement Authority (HCIA).  According to Moody’s, the HCIA bonds “are secured by a lease to which the city has pledged its general obligation.”

Moody’s cited “ongoing growth in tax base and strengthening of wealth metrics” as factors that could lead to future upgrades in ratings, if they were to happen.  

John Moody (1868-1958), the founder of Moody’s Investors Services, lived in Bayonne in his youth in the 19th century. According to author Kate Middleton’s Bayonne historical research, the Moody family lived at several different locations around Bayonne, including 33rd St., 36th St., 41st St., 45th St., Avenue C, and Avenue E. Mr. Moody wrote for The Bayonne Herald, a newspaper of the late nineteenth and early twentieth centuries.  Mr. Moody also attempted unsuccessfully to launch a few local publications of his own.  In 1900, he began publishing statistical manuals that were the ancestors of today’s Moody’s publications.