Release #349 -98

Contact: Colleen Roche (212) 788-2958
Curt Ritter (212) 788-2971

Standard & Poor's Corporation (S&P) today announced that it has upgraded New York City's General Obligation credit to A- from BBB+.

"Four years ago the prior administration handed us a budget that presented the City with its greatest fiscal crisis since the 1970s. Since then we have substantially changed the City's basic budget philosophy. We have not only overcome the crisis but helped produce the largest surplus in our history. With an emphasis on securing the long-term economic future of the City, we have implemented a balanced three-part approach to the budget. This year, as our heathy and vibrant economy produces a second year of unprecedented additional revenues, we will maintain our budget strategy which will:

• reduce out-year gaps to keep the City fiscally sound;
• cut taxes in order to increase job growth; and
• increase spending in strategic areas to improve the quality of life for all New Yorkers.

"I agree strongly with S&P's opinion that New York City must continue to make progress in reducing out-year gaps over the next few years and that 'the City's demonstrated track record in maintaining expenditure control will be even more crucial to the continued financial progress of the City,'" the Mayor added.