Release #308-00

 

Contact:

Sunny Mindel / Michael Anton (212) 788-2958

Mayor Rudolph W. Giuliani today announced that Moody's Investors Service has upgraded New York City's General Obligation credit to A2. In announcing the upgrade, Moody's cited the "strength of the City's current financial condition and economy" along with the City's "institutionalized budgetary controls" which "better enable [the City] to weather future cycles". In addition, Moody's noted that "the City's extended record of annual gap-closing actions to balance operating budgets demonstrates both its ability to adjust effectively to short-term fiscal pressures and its commitment to maintain balanced operations, as required by law".

"Sound fiscal management is one of the key foundations of New York City's renaissance," Mayor Giuliani said. "My administration has worked hard to control City spending, balance our budget, reduce taxes, and create a healthy business climate. The City hasn't enjoyed a Moody's rating this high in 12 years, and this latest upgrade demonstrates continued investor confidence in our financial policies, and welcome recognition of the City's strengthening economic base."

This upgrade benefits both current and future investors in the bonds of New York City, and will save the City millions of dollars in annual interest costs for the financing of its capital program.

Prior to today's action, Moody's most recently upgraded the general obligations of the city in February 1998, when the rating was increased from Baa1 to a rating of A3. This is the second upgrade awarded by Moody's during the Giuliani Administration.