Fitch Ratings' affirmed AA rating of New York City's general obligation bonds reflects the city's effective budget management, said a spokesman for Mayor Bill de Blasio's budget office.
"Fitch's rating underscores how the mayor's executive budget moves our city's finances forward in a fiscally responsible, progressive, and honest way -- with out-year gaps and debt service remaining at manageable levels," Amy Spitalnick, director of public affairs for the Office of Management and Budget, said moments after Fitch issued its June 5 statement.
"As Fitch's report wrote, this is the type of 'highly-effective budget management' that will keep our finances stable," she added.
Standard & Poor's also rates the GO bonds AA. Moody's Investors Service rates them Aa2.
Affected are the city's $42 billion in outstanding GO debt, as well as $850 million fiscal 2014 Series J and K, consisting of $765 million in Series J and $85 million in Series K.
Fitch said the city's nine-year contract with the United Federation of Teachers, whose member ratified the deal Tuesday, reduces uncertainty about the resolution of long-expired labor agreements.
"Fitch believes the overall package represents a sizeable but manageable funding need," the rating agency said.
Uncertainty remains with the financial plan's assumption that remaining open contracts achieve similar terms as the UFT's through fiscal 2018, according to Fitch.
