Four Internationally-Recognized, Independent Credit Rating Agencies — Moody’s, S&P, Fitch, and Kroll — Indicate Strong Confidence in City’s Stability, Resilience, and Fiscal Outlook
New York City Mayor Eric Adams highlighted recent affirmations of the city’s bond ratings based upon strong fiscal management by four internationally-recognized, independent credit rating agencies — Moody’s Ratings, S&P Global Ratings, Fitch Ratings, and Kroll Bond Rating Agency (KBRA). All four rating agencies assigned strong ratings in the double-A category and stable outlooks to the City of New York’s upcoming sale of $1.5 billion of General Obligation Bonds, which includes the city’s third issuance of Social Bonds reflecting New York City’s strong post-pandemic economic recovery, including record-high employment, steady tax revenue growth, and a rebound in tourism.
Through disciplined and strong fiscal management, the Adams administration has consistently achieved high bond ratings that have been either upgraded or maintained. These affirmations are the ninth consecutive time that the city’s General Obligation bond ratings have been affirmed by all four agencies at current levels. Further, Fitch Ratings revised the city’s outlook from stable to positive in May 2022 and upgraded the city’s credit rating from AA- to AA in February 2023.
“Our administration has done a remarkable job to stabilize our city’s finances and put us on a strong fiscal path,” said Mayor Adams. “Once again, the four internationally-recognized credit rating agencies are recognizing the prudent fiscal management we have implemented and how our administration has made the hard but smart decisions that will protect New Yorkers for years to come. Because of our leadership, we have record-high employment, a rebound of tourism, and a decline in crime. New Yorkers are better off today than they were when we took office two years ago, and as the credit agencies point out, there is tremendous reason to continue to be bullish on New York City.”
Maintaining a strong bond rating is an indication of the city’s financial strength and encourages continued investment in the city’s bonds, which help support funding to build and maintain schools, streets, parks, and other critical infrastructure that spans the five boroughs. Proceeds from the sale of the city’s social bonds will support the construction and development of over 4,300 more affordable housing units in New York City and continue to build on the administration’s efforts to build more homes across the five boroughs, through efforts such as, the “City of Yes for Housing Opportunity” proposal.
Moody’s Ratings highlights that the city has strong fiscal management, and, “[T]he Aa2 issuer rating reflects New York City's post-pandemic economic recovery, including record-high private employment, positive trends in assessed property values despite commercial real estate challenges, steady tax revenue growth, and strong tourism metrics…Management of the city's operations remains robust by its professional agency staffs.”
In its ratings report, S&P Global Ratings wrote “…we believe the city's strong governance framework can help ensure ongoing operational stability. New York City's credit profile is underpinned by its substantial and diverse economic base, with a population of 8.3 million…and its status as a globally recognized employment, financial, and tourism hub for the broader New York City metropolitan statistical area.” The report adds that, despite significant challenges, “…we believe the strength and resiliency of its economic and taxing base, and robust financial oversight and expenditure controls will continue to support balanced operating results and overall stability of its financial reserves, which helps position it to weather a shallower, but potentially more protracted, national economic slowdown.”
Fitch Ratings announced, “New York City's 'AA' Long-Term IDR and GO bond ratings reflect New York City's exceptionally strong budget monitoring and controls…[and] financial resilience assessment…Fitch expects the city to maintain its strong budget and fiscal management practices...”
KBRA identifies, “[T]he rating assignment and affirmation recognize the City of New York’s preeminent role as a domestic and international center of business, culture and tourism, the historic resiliency of its broad and diverse economic base, its elevated, yet manageable debt profile, management’s track record of fiscal discipline, and the efficacy of institutionalized procedures in confronting near-term financial challenges…KBRA acknowledges that city operations should continue unabated and further notes the considerable experience and stability of OMB and Comptroller’s Office professional staff responsible for the administration of city finances, debt management and budgeting.”
The credit ratings follow the July 2024 release of an on-time, balanced, and fiscally-responsible $112.4 billion Adopted Budget for Fiscal Year 2025 that invests in the future of New York City and addresses the three things that cost New Yorkers the most: housing, child care, and health care — and invests billions of dollars of city resources in critical areas, including early childhood education, cultural organizations, parks, public safety, transit, and more.
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