Fitch Ratings has affirmed its AA rating on New York’s general obligation bonds and revised its outlook on the state to positive from stable, the agency said late Tuesday afternoon.
The positive outlook reflected the state’s ability to achieve the spending targets in the fiscal 2012 budget and evidence of sustainability of the ongoing funding plan for Medicaid and schools.
Fitch also cited the state’s broad economy, strong financial planning, and a debt level that, while above average, is “still in the moderate range.” Pensions are well-funded, the agency said.
Fitch categorized the following bonds at AA: state personal income tax revenue bonds issued by the Dormitory Authority of the State of New York, the New York State Environmental Facilities Corp., the Empire State Development Corp./New York State Urban Development Corp., the New York State Housing Finance Agency, and the New York State Thruway Authority; New York Local Government Assistance Corp. senior- and subordinate-lien bonds; New York City Sales Tax Asset Receivable Corp. bonds; and Thruway Authority highway and bridge trust fund bonds.
Analysts affirmed various state appropriation-supported bonds at AA-minus, including service contract bonds issued by state agencies; DASNY mental health services facilities improvement revenue bonds; New York City Transitional Finance Authority state building aid revenue bonds; and Tobacco Settlement Financing Corp. contingency-contract secured asset-backed revenue bonds.
Fitch also categorized the DASNY districts’ revenue bond financing program revenue bonds as A-plus.
