Moody”™s Investors Service has raised its rating of New York state”™s general obligation bonds to Aa1, the highest rating the state”™s debt has held since the financial crisis of the 1970s.
In raising the bond rating, Moody”™s noted that state lawmakers passed a $137.9 billion budget on March 31, the last day of the budget year, marking the fourth on-time budget in a row under Gov. Andrew Cuomo.
“The Moody”™s announcement is a clear signal to investors that New York is on the right financial path,” state Comptroller Thomas DiNapoli said in a statement. “The rating upgrade is a positive reflection on the steps the governor and the Legislature have taken in recent years to strengthen the state”™s cash position, better align ongoing levels of spending and revenues, and reduce out-year budget gaps, which are actions that I have consistently highlighted as essential reforms.”
Moody’s upgrade to Aa1 from Aa2 affects New York’s personal income tax revenue, sales tax revenue, and highway and bridge bonds. The state has a total outstanding debt of about $62 billion.
