Release #354-00

 

Contact:

Sunny Mindel / Curt Ritter (212) 788-2958

Highest Rating Ever Assigned By Any Rating Agency

Fitch Follows Moody's and Standard & Poors
In Upgrading City's Credit Rating

Mayor Rudolph W. Giuliani today announced that Fitch IBCA Inc. has upgraded New York City's General Obligation credit from A to single A+. In announcing the upgrade, Fitch noted the "strength and breadth of the City's economic resurgence" as well as the City's "exceptional budget monitoring and management capabilities" among the factors leading to the upgrade.

This is the highest rating ever assigned by any rating agency to the general obligation debt of the City. This is the second time that Fitch has upgraded the City's General Obligation credit during the Giuliani Administration. In March 1999 Fitch raised the City rating from single A- to single A.

"We have now heard from the three major rating agencies, and the message is loud and clear that my Administration has restored fiscal stability to New York City", Mayor Giuliani said. "Over the last seven years, my Administration has successfully controlled City spending, reduced taxes, improved public safety and set the stage for continued economic growth. This action represents another expression of confidence by Wall Street in the City's financial management and economic policies."

This upgrade will be beneficial to current and future investors in the bonds of New York City, and will save the City millions of dollars in annual interest costs for financing the City's capital program.

Fitch is the third rating agency to upgrade the City in the last few weeks. On Wednesday of this week, Standard & Poor's upgraded the City rating from single A- to single A. On August 8, 2000, Moody's Investors Service upgraded the City from A3 to A2.