New York City Mayor Eric Adams today highlighted that four internationally-recognized, independent credit rating agencies — Moody’s Ratings, S&P Global Ratings, Fitch Ratings, and Kroll Bond Rating Agency (KBRA) — have, once again, affirmed the city’s strong bond ratings and stable outlook. Based on the strength of the city’s fiscal management, revenue performance, budget reserves, and post-pandemic recovery, all four agencies assigned double-A category ratings and stable outlooks to the city’s upcoming sale of approximately $1.5 billion of General Obligation Bonds. The city’s strong General Obligation Bond ratings and outlooks have been repeatedly either upgraded or affirmed by all four rating agencies over the course of the Adams administration. Notably, in February 2023, Fitch Ratings upgraded the city's credit rating from AA- to AA. On each occasion, the four agencies cited the city’s ongoing strong fiscal management in support of their decisions.
“As we have repeatedly demonstrated, our administration has skillfully managed New York City’s finances and fully rebounded our economy,” said Mayor Adams. “Once again, four independent, internationally-recognized credit rating agencies are commending our strong fiscal decisions and the steps we have taken to put New York City on solid financial footing. Thanks to our leadership, our economy has grown to new heights with record-high employment, we’ve rebounded tourism to near record levels, and we are seeing record decreases in crime. Every day, we are making key investments to make New York City a safer, more affordable city, and the best place to raise a family. Impressively, we have done all this despite facing an unprecedented international humanitarian crisis that was placed largely on New York City’s shoulders alone and we continue to generate confidence in New York City’s future.”
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.
In support of affirming the city’s strong bond rating, Fitch Ratings stated that “[t]he city experienced record revenue performance and strong recovery coming out of the pandemic, as well as improvement in reserve levels, which will help management navigate future economic downturns.”
Moody’s Ratings praised the city’s fiscal management and expanding economy, stating, “[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.” Further, “[t]he expanding economy is driven by the city's competitive advantages: a young, highly-skilled labor pool that over time has helped make New York City households wealthier; strong higher education and medical centers that also contribute higher paying jobs; and strong domestic and international transportation links that support New York City's position as a global economic, financial and cultural hub. Very strong institutional strength and financial governance have allowed successful implementation of budget control measures to close budget gaps primarily caused by now-waning asylum seeker costs.”
In its ratings report, S&P Global Ratings wrote that their long-term strong rating reflects the city’s “[e]conomic dynamism, resiliency, and diversity, with the city holding the status as the largest commercial and population center in the U.S. and a globally recognized economic hub.” Further, they acknowledged: “[s]ophisticated management with comprehensive financial policies, long-term financial planning, and practices that we believe support effective monitoring of the budget and additionally include risk management strategies for cyber security, preparedness for physical risk events, and transparency for stakeholders. PlaNYC, released in 2023, highlights the city's efforts to protect its economy and population from climate change threats, underpins management's proactive strengths.” Finally, S&P noted the city’s resiliency, basing their stable outlook “...on its continuing ability to navigate potentially disruptive uncertainties and sustain financial stability, particularly amid evolving federal and state policy and funding priorities, over the near-term.”
In affirming their rating, KBRA “...recognizes 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.” The stable outlook “... reflects the resilient performance of the [c]ity’s diverse revenue portfolio, underscored by the well-established fiscal oversight and tracking mechanisms...We expect the recent trend of positive operating performance, record reserves, and ample budgetary flexibility to provide a satisfactory buffer against a possible economic downturn.” Further, KBRA “...views the [c]ity management structure and adopted policies as affording a strong framework for day-to-day operations and service delivery, financial monitoring and oversight, and long-term financial and capital planning.”
The credit rating and stable outlook affirmations follow the release of the Fiscal Year 2026 Preliminary Budget in January 2025 that makes sound investments that will keep city subways and streets safe, bring tax relief to working-class New Yorkers, beautify parks, and make New York City the best place to raise a family. These investments were made possible through the Adams administration’s ongoing strong fiscal management, $3.4 billion in total savings, and actions that set the stage for a robust economy.
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