Another major financial rating organization has upgraded New York state”™s general obligation bonds, Gov. Andrew Cuomo announced Friday.
Fitch Ratings upgraded New York”™s credit rating to AA+ and gave the state a stable outlook, reflecting the best ratings Fitch has ever given the state. Earlier in the week, Moody”™s Investors Service upgraded New York state”™s general obligation bonds to Aa1.
“News that Fitch Ratings has upgraded our bonds to the highest level ever for New York state is the cherry on the cake after a productive and successful end to the 2014 legislative session,” Cuomo said in a statement. “This is tremendously good news on a number of levels as it will make a major economic difference to the state as we will pay less interest on bonds and by doing so, save money for the taxpayers.”
Fitch Ratings upgraded New York’s general obligation bond rating to AA+ from AA. Also upgraded to AA+ are the state”™s personal income tax revenue, sales tax revenue, Local Government Assistance Corp. and certain other state-backed bonds.
Fitch”™s report said “the upgrade reflects the improved fiscal management practices of recent years that have resulted in timely and more sustainable budget-making. Notable recurring actions were taken to close budget gaps in the downturn, and in the recovery the state has limited the growth in spending.”
Together, the upgrades from Moody”™s and Fitch represent New York”™s best credit ratings since 1972.
