The 'A' rating on New York City's GO bonds reflects the city's substantial and diverse economic base, which weakened through the recent national recession and has grown slowly due in part to the stagnant performance of the financial services sector, which remains an impediment to economic growth. Also factored into the rating is the well-managed financial program of the city, which has proactively responded to record budget gaps, and a high debt burden by all measures. The city's outlook was revised to stable from negative in May following the funding package negotiated with New York State that provides recurring revenue, state aid, and other budget relief measures to balance fiscal 2004 and alleviate pressure on out-year gaps. While the package
