Printer Friendly

MOODY'S CONFIRMS 'BAA1' RATING ON NEW YORK CITY'S GENERAL OBLIGATION BONDS

 MOODY'S CONFIRMS 'BAA1' RATING ON NEW YORK CITY'S
 GENERAL OBLIGATION BONDS
 NEW YORK, May 18 /PRNewswire/ -- Moody's Investors Service has confirmed the 'Baa1' rating on approximately $19.6 billion in New York City general obligation bonds in conjunction with tomorrow's sale of $1,026,930,000 general obligation bonds, fiscal 1992 Series H and Series I. While the underlying credit fundamentals of the city continue to be unchanged, despite ongoing recessionary pressures on revenues and expenditures, the city now projects ending fiscal 1992 with a small operating surplus due to both significant gap closing measures taken throughout the year and more realistic economic assumptions. Although the surplus is indicative of the city's recent, more stable financial performance, the size of the surplus relative to the city's overall budget is modest and does not necessarily signal any long-term change in the city's fundamental credit position. In the mayor's proposed fiscal 1993 budget, the surplus from fiscal 1992 has been used to prepay various expenses and helps to eliminate the need for transitional funding in fiscal 1993 which had been previously proposed as part of the effort to achieve long-term structural balance. The capital program, which has recently been revised, contains a 12 percent reduction in general obligation borrowing. This is modest compared to earlier proposals of 30 percent reductions in general obligation borrowing and appears more achievable. Nevertheless, as immediate operating pressures ease, the ability of the city to continue implementing its restructuring goals and the avoidance of a return to significant expenditure base growth will be a politically and financially complex process in light of the city's substantial service demands. Adequate management of this process will be critical to the city's future credit position.
 -0- 5/18/92
 /CONTACT: Michael Johnston, 212-553-7810, or Marie Pisecki, 212-553-7120, both of Moody's Public Finance Department/ CO: New York City ST: New York IN: SU: RTG


AH-OS -- NY070 -- 1461 05/18/92 15:52 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 18, 1992
Words:321
Previous Article:NORTHWEST PIPELINE TO REDEEM 9.5 PERCENT SINKING FUND DEBENTURES
Next Article:MVMA AND JAMA ISSUE STATEMENT


Related Articles
MOODY'S CONFIRMS
MOODY'S CONFIRMS 'Baa1' RATING ON NEW YORK CITY'S GENERAL OBLIGATION BONDS AND ASSIGNS RATINGS TO FOUR SERIES OF ADJUSTABLE RATE BONDS
MOODY'S CONFIRMS 'A' RATING ON STATE OF NEW YORK GENERAL OBLIGATION BONDS
MOODY'S CONFIRMS Baa1 RATING ON NEW YORK CITY GENERAL OBLIGATION BONDS
MOODY'S ASSIGNS 'MIG 1' RATINGS TO WEST HAVEN, CONN., STATE-GUARANTEED G.O. BANs AND G.O. INTERIM FUNDING OBLIGATIONS; PROVIDES NEEDED CASH
MOODY'S LOWERS RATING ON NEW YORK MTA TRANSIT FACILITIES; NEW YORK CITY TRANSIT AUTHORITY REVENUE BONDS TO 'Baa' FROM 'Baa1'
MOODY'S REVISED RATINGS ON RENO, NEV. DEBT CITES DEPLETED RESERVES AND LACK OF FINANCIAL FLEXIBILITY
WORCESTER, MASS., GENERAL OBLIGATION RATING LOWERED FROM 'Baa1' to 'Baa'; FINANCIAL DETERIORATION CITED
MOODY'S CONFIRMS 'Baa1' RATING ON SUFFOLK COUNTY, N.Y. GENERAL OBLIGATION BONDS
MOODY'S CONFIRMS 'Baa1' RATING ON NEW YORK CITY GENERAL OBLIGATION BONDS; RATING OUTLOOK IS STABLE

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters