Press Release|Public Finance

KBRA Affirms AA+ Rating for State of New York General Obligation Bonds; Outlook is Stable

15 Dec 2023   |   New York


KBRA affirms the long-term rating of AA+ with a Stable Outlook for the State of New York's General Obligation Bonds.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • Broad and wealthy statewide resource base contributes to economic resiliency.
  • Demonstrated record of closing budget gaps using a combination of spending restraint and offsetting budgetary actions, including moving spending off-budget, delaying payments, and recategorizing costs.
  • Manageably low fixed cost burden enhances financial flexibility.

Credit Challenges

  • The State is reliant on PIT receipts, which historically comprise almost 2/3 of total tax collections. PIT receipts are economically sensitive, subject to uncertainties relating to remote working and tax migration, and closely correlated to the income of wealthy residents and the performance of the financial sector.

Rating Sensitivities

For Upgrade

  • Trend of stable to increasing state tax receipts indicative of economic resiliency and a trend of near-to-mid-term growth in the State resource base.
  • Continued adherence to spending caps and progress towards achieving long-term structural balance.

For Downgrade

  • Failure of the Governor and Legislature to act, when necessary, to maintain budgetary balance.
  • Significant depletion of reserves to fund operations, reliance on non-recurring revenues to maintain budgetary balance, or the use of deficit financing.

To access rating and relevant documents, click here.



A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1002889

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