Release #347-00

 

Contact:

Sunny Mindel/Curt Ritter (212) 788-2958

Highest Standard & Poor's Rating In 25 Years

Raise Reflects The City's Budget Philosophy
And Successful Management of City

Mayor Rudolph W. Giuliani today announced that Standard & Poor's Corporation (S&P) that it has raised New York City's General Obligation credit to single A from single A-. S&P noted "the Administration's commitment to improved financial performance, along with historic long-term financial planning, remains a solid financial management strength and affords the City flexibility to manage its operating budget through economic cycles."

This is the highest rating S&P has given the City in over 25 years, before the fiscal crisis of 1975, and the second time during the Giuliani Administration that S&P has raised the City's General Obligation credit. In July 1998 S&P raised the City's rating from BBB+ to single A-.

"This upgrade is confirmation of my Administration's efforts to restore fiscal stability to New York City," said Mayor Giuliani. "Through sound fiscal management we have controlled City spending, cut taxes, created thousands of new jobs, reduced crime and the number of dependents on pubic assistance, and made New York City a friendlier place for businesses to grow and prosper. This upgrade demonstrates continued investor confidence in our financial policies, and I welcome this recognition of the City's strengthening economic base."

The Mayor also noted that today's upgrade, as well as last month's upgrade by Moody's Investors Service to A2 from A3, the highest rating in 12 years, will save the City millions of dollars in annual interest costs for the financing of its capital program and will benefit current and future investors in the bonds of New York City.