S&P Global Ratings affirmed its 'AA+' rating on New York State's general obligation (GO) bonds and its 'AA' rating on the state's various appropriation-backed obligations. The outlook is stable. The GO bonds are secured by the state's full faith and credit. Our rating reflects our opinion of New York's strong credit fundamentals, underpinned by its very proactive financial management, reflected by its commitment to structural balance and very strong reserve levels. While the state's economy is one of the largest in the world, it faces long term headwinds due to slower economic growth relative to the nation and potential volatility in tax revenue trends, particularly during an economic contraction due to its reliance on capital gains tax and exposure to
