Moody's

Moodys says it is placing additional weight on the states' Aaa ratings in determining the Garvee ratings.

Both ratings agencies cited the health system's improved liquidity in recent years.

"The upgrades incorporate our view of New Hampshire's improved economic and demographic growth trends that continue to perform near or above those of the U.S. and regional peers," said analyst Thomas Zemetis.

Set to be priced by Jefferies on Monday for retail investors and on Tuesday for institutions, New York City's tax-exempt general obligation bond deal is tentatively structured in four series with two subseries.

This decision will accelerate foreign buyers' reduced presence in the muni market, said Vikram Rai, head of municipal markets strategy at Wells Fargo.

The ratings agency cited federal support and military spending on the island as keys to its decision.

"The upgrade reflects an expected continuation of very strong and consistent operating performance and revenue growth," Moody's said.

Moody's also affirmed the A1 rating on the authority's $3.2 billion of general revenue bonds and the A2 rating on the $2.5 billion of general revenue junior indebtedness obligations.

"Higher education is going to be facing continued challenges in the near term," said Tom Kozlik, managing director at Hilltop Securities.

The downgrade of Issaquah School District 411 to Aa1 affects $670 million in debt.