While it’s unlikely to singlehandedly trigger a rating upgrade, the New York Legislature’s approval of Gov. Andrew Cuomo’s overhaul of the state income tax code is a step in the right direction, muni market observers say.

“I’m not expecting an upgrade, but I see it as a credit positive,” Alan Schankel, a managing director of Janney Capital Markets in Philadelphia, said Thursday after the state Senate and Assembly passed the tax and jobs package that Cuomo sent to them only a day earlier.

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