The rating on New York City, New York's bonds reflects: * Improved financial performance. The city has produced recent budget surpluses, demonstrated willingness to curtail expenditure growth, and reduced the out-year gaps. Property tax revenues have increased and use of nonrecurring revenues has been limited. The rating anticipates that the city will continue balancing ongoing revenue and expenditures while maintaining conservative budget assumptions: * Continued steady economic improvement, highlighted by strong Wall Street-driven income gains and moderate increases in employment; and * Continued GAAP balanced budgets that reflect, in part, strong financial control systems. A higher rating is precluded by extraordinarily high debt levels, significant ongoing capital needs, and the inability to translate robust surpluses into more lasting budget relief.
