Fitch Ratings assigns an 'AA' rating to the following New York City general obligation (GO) bonds:
--$75 million adjustable rate bonds, fiscal 2011 series F-3.
The bonds will be privately placed.
RATING RATIONALE:
--The city has a broad economic base and a unique role as a national and international center for commerce and culture. Income levels are high.
--Economic and financial exposure to both the financial services industry and the real estate market results in variability in the city's revenue system.
--New York's advanced, effective budget monitoring and management and conservative revenue forecasting have allowed the city to react quickly to changing conditions.
--Although the city is not able to maintain a rainy day reserve, management took steps in recent boom years to reduce out-year gaps and responded proactively to slowing in the recent downturn.
--The city's debt levels are high and rising. Pension funding is adequate, although annual pension costs are an increasing spending pressure.
KEY RATING DRIVERS:
--Continued sound and timely action to address rising spending pressures and budget gaps.
--Any meaningful change to the shape of the financial services industry would have significant implications for the city's economy and finances.
SECURITY:
The bonds are general obligations of the city backed by its full faith and credit.
For more information, see Fitch's press release 'Fitch Rates New York City's $1.2B GOs 'AA'; Outlook Stable' dated Dec. 10, 2010.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Tax-Supported Rating Criteria', dated Aug. 16, 2010;
--'U.S. Local Government Tax-Supported Rating Criteria', dated Oct. 8, 2010.
For information on Build America Bonds, visit 'www.fitchratings.com/BABs'.
Applicable Criteria and Related Research:
Tax-Supported Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=548605
U.S. Local Government Tax-Supported Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=564566
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
Contacts:
Fitch Ratings
Primary Analyst
Laura Porter, +1-212-908-0575
Managing
Director
Fitch, Inc.
One State Street Plaza
New York, NY
10004
or
Secondary Analyst
Douglas Offerman,
+1-212-908-0889
Senior Director
or
Committee Chairperson
Karen
Krop, +1-212-908-0661
Senior Director
or
Media Relations:
Cindy
Stoller, +1-212-908-0526
Email: cindy.stoller@fitchratings.com