Hudson Yards Infrastructure Corp., NY Revenue Bond Rating Raised To 'AA' From 'AA-' On Improved Debt Service Coverage

NEW YORK (S&P Global Ratings) Sept. 26, 2023--S&P Global Ratings raised its long-term rating and underlying rating (SPUR) to 'AA' from 'AA-' on Hudson Yards Infrastructure Corp. (HYIC), N.Y.'s revenue bonds outstanding. The outlook, in line with that on New York City, is stable. "The upgrade reflects progress and ongoing development at Hudson Yards that has led to increased payments in lieu of (real estate) taxes (PILOTs), which are now more than sufficient to cover debt service payments, mitigating the risk of nonappropriation of the city's tax equivalency payments and allowing us to align the rating on HYIC with that on New York City," said S&P Global Ratings credit analyst Felix Winnekens. We also view the following as important factors

...September 26, 2023 NEW YORK (S&P Global Ratings) Sept. 26, 2023--S&P Global Ratings raised its long-term rating and underlying rating (SPUR) to '##' from '##-' on Hudson Yards Infrastructure Corp. (HYIC), N.Y.'s revenue bonds outstanding. The outlook, in line with that on New York City, is stable. "The upgrade reflects progress and ongoing development at Hudson Yards that has led to increased payments in lieu of (real estate) taxes (PILOTs), which are now more than sufficient to cover debt service payments, mitigating the risk of nonappropriation of the city's tax equivalency payments and allowing us to align the rating on HYIC with that on New York City," said S&P Global Ratings credit analyst Felix Winnekens. We also view the following as important factors in our rating determination: - New York City's general creditworthiness (##/Stable GO rating) and status as a global economic and employment center with a high-value real estate market that, while still somewhat pressured following...

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