NEW YORK (Standard&Poor's) May 17, 2005--Standard&Poor's Ratings Services today raised its rating on New York City's more than $32 billion of general obligation debt outstanding to 'A+' from 'A' based on the city's steady fiscal and economic recovery since 2001 and strong budget management, with record gaps proactively responded to and closed. Also factored into the rating action is a comprehensive financial planning process that has enabled the city to effectively balance its ongoing spending pressures. The outlook is stable. The 'A+' rating represents the highest rating Standard&Poor's has ever assigned to the city's debt. "Although New York City continues to face challenges to its financial plan, along with significant out-year gaps, its long-term
