The rating continues to reflect the State of New York’s (the “State’s”) diversified economic base; strong reserves and liquidity position; low fixed costs relating to debt service, pensions, and other post-employment benefits; and well-funded pension obligations. A robust statutory and legal framework governs financial management and debt practices. The State’s full faith and credit is pledged to the payment of debt service on its General Obligation (“G.O.”) Bonds.
The rating also considers: persistent cost pressure related to Medicaid and school aid spending that drives significant projected outyear spending gaps which need to be addressed; the State’s concentrated reliance on economically volatile personal income tax receipts; challenges relating to recent Federal legislation and policies, including Federal spending reductions; and, projected increases in already high levels of outstanding indebtedness.
Proceeds of the currently offered G.O. Bonds will be used to…
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