Saturday, May 14, 2022

Statement from NYC Comptroller Brad Lander on Fitch Ratings Outlook Revision


New York City Comptroller Brad Lander released a statement in response to today’s revised outlook on the City’s General Obligation (GO) credit from “stable” to “positive” by Fitch Ratings. 

The revised outlook comes in connection with the City’s upcoming general obligation bond sale. Fitch cites the City’s improved revenue performance and budgeted increases in reserve levels as key factors in their outlook revision. This action follows a meeting that the Comptroller’s senior staff had with Fitch personnel to discuss the City’s credit. 

Fitch also noted setting aside reserves above current levels and plausible structural solutions to out-year budget gaps as factors that could lead to them to upgrade the City’s credit rating. 

The City’s long-term General Obligation bond ratings are Aa2 from Moody’s, AA from S&P, AA+ from Kroll, and AA- from Fitch. 

In a statement, Comptroller Lander said:

“Fitch Ratings’ revised positive outlook on the City’s credit is welcome news for NYC. Prudent fiscal management is key to ensuring a strong economy for New York City, especially through a time of unprecedented challenges. NYC is in better-than-expected financial condition, made possible through historic federal relief as well as strong revenue collections. However, the work is not done, and the City should use this opportunity to continue bolstering reserves. My office remains committed to critical oversight of both the City’s budget and economy to ensure an inclusive recovery and a sustainable future for all New Yorkers.” 

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