Moody’s Investors Service on Thursday changed the outlook on New York from stable to positive and affirmed the Aa2 rating on the state’s $3.5 billion in general-obligation (G.O.) bonds. Moody’s has also affirmed the ratings on all outstanding appropriation-backed and G.O.-related bonds as well as various state-intercept programs. The positive outlook reflects improvements […]
Moody’s Investors Service on Thursday changed the outlook on New York from stable to positive and affirmed the Aa2 rating on the state’s $3.5 billion in general-obligation (G.O.) bonds.
Moody’s has also affirmed the ratings on all outstanding appropriation-backed and G.O.-related bonds as well as various state-intercept programs.
The positive outlook reflects improvements in New York’s economy, governance, financial position, and fiscal outlook, Moody’s said in a news release. If the trend continues, New York would also boost its reserves and draw closer to “structural balance,” the firm added.
New York’s Aa2 general obligation rating reflects the relative strength and recent resilience of its economy; governance constraints including a history of late budgets and limited executive authority to reduce appropriations; a financial position that has improved but remains below average; a moderate combined debt and pension burden; and sound debt management and frequently updated financial forecasting, according to Moody’s.
The revision is “another strong affirmation” of the progress state government has made to put New York’s fiscal house “in order,” New York Gov. Andrew Cuomo contended in a news release.
Contact Reinhardt at ereinhardt@cnybj.com
