The rating upgrade on New York City's GO bonds reflects strong financial results and steady economic expansion across most sectors. This administration's commitment to improved financial performance, along with historic long-term financial planning, remains a solid financial management strength and affords the city flexibility to manage its operating budget through economic cycles. While substantial financial pressures and demands in both its operating and capital budgets throughout economic cycles will always test the city, Standard&Poor's feels the city's ability to manage these pressures is demonstrated at the 'A' rating level. Other rating factors include: A substantial and diverse economic base; A very steady economic expansion that has reached all boroughs in the city and includes employment growth in nearly