Press Release|Public Finance
KBRA Assigns AAA Rating to Dormitory Authority of the State of New York State Personal Income Tax Revenue Bonds (General Purpose), Series 2026C (Tax-Exempt); Affirms Related Ratings
19 Oct 2026 | New York
KBRA assigns a long-term rating of AAA to the Dormitory Authority of New York State State Personal Income Tax Revenue Bonds (General Purpose), Series 2026C (Tax-Exempt) and affirms the long-term rating of AAA for the State's outstanding State Personal Income Tax Revenue Bonds. The rating Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Provisions of the PIT Enabling Act and the importance of residual PIT revenues to fund State operations mitigate the risk of legislative non-appropriation or a failure to pay financing agreement payments when due after amounts have been appropriated and set aside in the RBTF.
- RBTF Receipts provide ample historical and projected coverage of maximum annual debt service.
- The 2.0x additional bonds test and essentiality of surplus PIT revenues mitigate against overleveraging.
Credit Challenges
- PIT receipts, particularly the non-withholding component, are inherently volatile and closely correlated to the income of wealthy residents and financial sector performance. The share of PIT receipts related to net capital gains is significant.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- A trend of declining debt service coverage that approaches the 2.0x ABT level.
- Failure by the State Legislature to annually appropriate financing agreement payments.
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