Standard&Poor's Ratings Services assigned its 'AA' rating, and stable outlook, to New York State's series 2011E tax-exempt and series 2011F taxable general obligation (GO) bonds. At the same time, Standard&Poor's affirmed its 'AA' rating, with a stable outlook, on the state's GO debt outstanding. The 'AA' state GO rating reflects what we view as New York State's: Diverse economy of 19.4 million people, with unemployment levels below the national average and income levels above the national average; History of what we consider conservative budgeting, quarterly updated budget forecasts, active expense management in economically weak periods, and an established rainy-day fund, although it has not always been fully funded; Cyclical finances, as evidenced by a small operating
