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Moody's makes no change to Niagara Falls' credit rating in light of casino cash deal

Moody's says last week's deal between the Seneca Nation of Indians and the state is a "credit positive" for the cities who were waiting for the revenue, including Niagara Falls.

Last month, Moody's downgraded the city's credit rating for the second time in five months in large part because of the casino cash dispute.

Here's Moody's full statement:

“New York State and Seneca Nation Settle Revenue Dispute, A Credit Positive for Host Cities.” New York Governor Cuomo and the Seneca Nation have ended a four-year dispute over casino revenues. The Senecas will release approximately $420 million of casino revenues currently held in escrow and retain the exclusive right to run casinos in western New York. The settlement is credit positive for the local governments in the region that benefit from the revenue-sharing agreement, particularly the cities of Niagara Falls (rated Baa3/negative outlook) and Salamanca (not rated), which had experienced financial distress due to the accumulated loss of these revenues. The state will retain $280 million of the funds and distribute the remaining $140 million to Niagara Falls, Salamanca and Buffalo (A1/stable). The settlement also restores several million dollars in annual casino revenue distributions to the state and local governments, and the State of New York has now settled all major disputes with Indian nations over gaming revenues. Niagara Falls’ rating has not changed at this time.

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casinos | city government
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Tales of a world-famous natural wonder and the city that surrounds it. The Brink is home for all you need to know about Niagara Falls, N.Y.

Aaron Besecker

Aaron Besecker

Aaron Besecker joined The Buffalo News in 2007, where he has covered communities in Western New York as a beat reporter, multimedia journalist and assistant online editor. A Buffalo native, he began his career in journalism at the Niagara Gazette.

@The_Brink_Blog | abesecker@buffnews.com

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