Bulletin: NYC Generally Well Positioned To Handle COVID-19's Near-Term Economic Effects

NEW YORK (S&P Global Ratings) March 18, 2020--S&P Global Ratings said today that New York City's (AA/Stable) strong liquidity threshold positions it well for the evolving COVID-19 situation in the near term. In support of this view, we cite a high average cash balance of about $7.6 billion for fiscal 2019, an average daily cash balance of $5.6 billion (six months ended Dec. 31), and total cash receipts that are up 5.3% in the first half of fiscal 2020 over the prior year. These factors partly offset our belief that New York City could experience acute economic effects amid ongoing severe limitations on global travel, given its role as an international tourist hub and as the No. 1 U.S. port

...March 18, 2020 NEW YORK (S&P Global Ratings) March 18, 2020--S&P Global Ratings said today that New York City's (##/Stable) strong liquidity threshold positions it well for the evolving COVID-19 situation in the near term. In support of this view, we cite a high average cash balance of about $7.6 billion for fiscal 2019, an average daily cash balance of $5.6 billion (six months ended Dec. 31), and total cash receipts that are up 5.3% in the first half of fiscal 2020 over the prior year. These factors partly offset our belief that New York City could experience acute economic effects amid ongoing severe limitations on global travel, given its role as an international tourist hub and as the No. 1 U.S. port of entry (according to the U.S. Department of Commerce). Furthermore, the city predicts its cash balances daily, which is operationally instrumental when one-time shock events such as COVID-19 occur. In addition, the city's forecast for wage growth (driving its personal income tax revenue...

Bulletin