The rating on New York City, N.Y.'s GO bonds reflects: Continued economic growth highlighted by strong Wall Street-driven income gains combined with increases in employment for the sixth straight year, Continued strong and improved financial performance highlighted by growing budget surpluses and tax reductions, A robust real estate market highlighted by declining vacancy rates for commercial real estate and overall growth in property tax collections, Improvements in many key social indicators, and Historically strong financial control systems including routine updates to the city's four-year financial plan. A higher rating is precluded by extraordinarily high debt levels, significant ongoing capital needs, and upcoming labor negotiations that could be very costly. In addition, the city continues to forecast significant budget gaps going
