Contact: Colleen Roche/Curt Ritter (212) 788-2958
Fitch IBCA, the International Rating Agency, today announced that is has upgraded New York City's General Obligation credit to "A" from its previous rating level of "A minus."
"This is great news for New York City and I appreciate the upgrade from Fitch IBCA because it reflects a recognition of the strong fiscal discipline which has been a hallmark of my Administration and Fitch IBCA's confidence in New York City.
Five yeas ago the City faced its greatest fiscal crisis since the 1970's. Since then we have changed the City's basic budget philosophy. We have not only overcome the crisis, but also helped to produce the largest surplus in our history. This year, as our healthy and vibrant economy produces a third year of substantial additional revenues, we will maintain our budget strategy to reduce out-year gaps to keep the City fiscally sound and cut taxes in order to increase job growth."
In making its announcement, Fitch IBCA, stated that the rating upgrade reflects "sustained broad based economic growth," "strong financial operating results" and "demonstrated resolve and effective budget management." The Fitch IBCA upgrade is the third bond rating upgrade to be received by the City of New York in the past 13 months. In February, 1998 Moody's Investors Service increased the City's bond rating from "Baa1" to "A3." In July of 1998, Standard and Poor's Ratings Service increased its rating on New York City General Obligation bonds from "BBB+" to "A-."