June 20 Fitch Ratings upgraded the state of New
York's general obligation (GO) bond rating to 'AA+' from 'AA',
citing improved fiscal management practices by the state in
The ratings change comes a few months after New York passed
its fourth consecutive on-time state budget, something that had
not happened for nearly four decades.
The ratings agency said it expects that the state will
continue to adhere to strengthened fiscal management practices.
"The upgrade reflects the improved fiscal management
practices of recent years that have resulted in timely and more
sustainable budget-making. Notable recurring actions were taken
to close budget gaps in the downturn, and in the recovery the
state has limited the growth in spending," Fitch said.
Under Governor Andrew Cuomo, New York has been shedding its
reputation of fiscal dysfunction. Since 1978, the state budget
had arrived an average of 36 days late, and in some years,
budgetary debates run into July and even August, according to
the state's budget office.
Fitch noted that while New York's debt burden is above
average, it is still in the moderate range, with a modest
decline in recent years.
(Reporting by Tanvi Mehta in Bangalore and Robin Respaut in New
York; editing by G Crosse)