Oyster Bay Press Release_25 July 2013

Rating On Oyster Bay, NY's GO Bonds Put On CreditWatch Negative On Uncertain Financial Position Primary Credit Analyst: Lindsay Wilhelm, New Y ork (1) 212-438-230 1; lindsay .wilhelm@st andardandpoors.com Secondary Contact: Timothy W Barrett, New Y ork (1) 212-438-6327; timothy .barrett@standardan dpoors.com NEW YORK (Standard & Poor's) July 25, 2013--Standard & Poor's Ratings Services has placed its 'A' rating on Oyster Bay, N.Y.'s general obligation (GO) bonds on CreditWatch with negative implications. "The CreditWatch reflects our view that if a voter referendum for a property sale fails to pass on Aug. 20, 2013, or the sale does not o th er wi se proceed as planned, the town could have difficulty meeting its financial obligations if it further fails to receive state approval to issue deficit bonds on a timely basis," said Standard & Poor's credit analyst Lindsay Wilhelm. However, if the referendum is successful and Oyster Bay is able to close on the sale quickly, we believe that the proceeds should help stabilize the town's deficit reserve position. At the same time, Standard & Poor's assigned its 'SP-1' short-term rating to Oyster Bay's series 2013 bond anticipation notes (BANs). The 'SP-1' rating reflects our assessment of Oyster Bay's general creditworthiness, coupled with a low market risk profile. That profile reflects Oyster Bay's strong legal autho ri ty to issue long-term debt to take out the notes, as well as its position as a frequent debt issuer that regularly provides ongoing disclosure to market participants. The 'A' GO rating further reflects our opinion of the town's: • Financial deterioration due to general fund deficits in each of the past seven fiscal years, as well as deficit b al ances in nearly all of the WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 25, 2013 1 1167215 | 301932398

Oyster Bay Press Release_25 July 2013

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