Fitch upgrades New York state’s bond rating

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.