Summary: New York City Educational Construction Fund New York City; Appropriations; General Obligation; Joint Criteria; Liquidity Facility; Moral Obligation

S&P Global Ratings assigned its 'AA-' long-term rating, and stable outlook, to New York City Educational Construction Fund's (ECF) $40.7 million revenue bonds. In addition, S&P Global Ratings affirmed its 'AA-' rating, with a stable outlook, on ECF's approximately $231.2 million parity debt outstanding. Finally, S&P Global Ratings affirmed its ratings on various issuances where the short-term ratings are based on the liquidity support provided by various financial institutions. The ratings are based on the application of S&P Global Ratings "Issue Credit Ratings Linked to U.S. Public Finance Obligor?s Creditworthiness" criteria, published Jan. 22, 2018 on RatingsDirect. Lease rental payments from New York City, which are subject to annual appropriation, and fund income (non-school revenues) secure the bonds. We rate

...revenue outlook and our expectation for the release of the city's comprehensive annual financial report before the required Oct. 31 deadline; we anticipate the report will show results are largely in line with estimates provided in the adopted fiscal 2019 budget. The economic and revenue outlook finds a continuation of strong growth trends in New York City's wealth and income base, albeit with some pullback in the pace of home sales and employment growth. Securities industry profits experienced healthy year-over-year growth, which provide a boost for the city's income tax and support general economic activity. General wage growth is estimated at 3.6%, the highest level since 2008. We base the rating on what we view as the following credit factors: + The underlying creditworthiness of New York City (##/Stable); + The city's well-established history of funding its appropriation obligations; and + The relationship between New York City and ECF, the latter of which serves a basic need for residents...

Summary