The rating on New York City, N.Y.'s bonds reflects chronic budgetary stress from long-term weak economic performance, high debt, continued softness in real estate valuation, and reliance on nonrecurring revenues to achieve budget balance. The recently adopted budget and the four-year financial plan continues to send mixed signals about the city's ability to achieve structural budgetary balance. Despite the weakness in New York City's economic performance, key credit strengths remain in the broad depth and diversity of the city's economy combined with a long history of budgets balanced under GAAP, as well as strong financial monitoring systems. The adopted plan anticipates rolling a current year surplus of $243 million into the balanced fiscal 1997 budget. Fiscal 1996 expenditures for the
