NEW YORK, NY--(BUSINESS WIRE)--Fitch Ratings has assigned a rating of 'AA' to the following New York City general obligation (GO) bonds: --$515,000,000 tax-exempt, fiscal 2012, subseries A-1;
--$85,000,000 taxable bonds, fiscal 2012, subseries A-2.
The tax-exempt bonds will be sold by negotiation, and the taxable bonds will be sold by competitive bid on July 20. Both series of bonds are expected to close on August 9. Proceeds will be used for capital purposes and the payment of certain cost of issuance.
Fitch also affirms approximately $41.6 billion in outstanding GO bonds at 'AA'.
The Rating Outlook is Stable.
RATING RATIONALE:
- --New York City's advanced, effective budget monitoring and management and conservative revenue forecasting have allowed the city to react quickly to changing conditions and consistently generate operating surpluses before discretionary transfers;
- --The city has an extended history of effectively eliminating sizable out-year budget gaps, mitigating risk to the inability to maintain a rainy day reserve;
- --The city has a broad economic base and a unique role as a national and international center for commerce and culture. Income levels are high;
--Key revenue streams are closely linked to the cyclical financial services industry and the real estate market;
- --The city's debt levels are expected to remain high despite recent action to reduce future borrowing;
- --Annual personnel costs, particularly pension contributions, are expected to consume an increasingly large share of general fund resources.
For a complete copy of Fitch’s news release, please contact:
Fitch Ratings
Primary Analyst
Michael Rinaldi, +1-212-908-0833
Senior Director
Fitch Inc.
One State Street
New York, N.Y. 10004
Or
Secondary Analyst
Amy Laskey, +1-212-908-0568
Managing Director
Or
Committee Chairperson
Laura Porter, +1-212-908-0575
Managing Director
Or
Media Relations:
Cindy Stoller, +1-212-908-0526
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