The rating on New York City's GO bonds reflects: A substantial and diverse economic base that has experienced growth across each of the city's five boroughs and nearly all sectors; Strong financial operating results in recent years; Continued long-term financial planning, which remains a solid financial management strength and affords the city flexibility to manage its operating budget through economic cycles; and Strong statutory provisions that require balanced budgets and financial plans on a GAAP basis, which have contributed to a long track record of improving financial operating results. Offsetting factors include: A substantial debt burden that has accelerated over the past decade, with this trend likely to continue given the city's broad service and infrastructure responsibility; Uncertainty surrounding governmental
