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September 3, 2010


Dear Mayor:

The recent credit rating downgrade of Westfield by Moody's Investor Service has been reported by Bloomberg to be based largely on the impact of the State's imposed 2% budget cap.

The League urges caution in reacting to this decision until more information is available.  Although Moody’s mentions the cap as a negative, the downgrade also appears to be based on other factors unrelated to the cap.

It is unclear how much of a factor the cap was in its decision and how much of a factor the cap will be by Moody’s and the other rating agencies in future rating reviews.  More rating reviews will follow in the next two months.  These will give a better read on this subject.

We will continue to monitor the situation and keep you posted on upcoming further developments.

Very truly yours,


William G. Dressel, Jr.
Executive Director


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