KBRA Assigns AA+ Rating to the City of New York General Obligation Bonds, Fiscal 2027 Series A. Outlook is Stable

KBRA Assigns AA+ Rating to the City of New York General Obligation Bonds, Fiscal 2027 Series A. Outlook is Stable

KBRA assigns a long-term rating of AA+ to the City of New York General Obligation Bonds, Fiscal 2027 Series A. The Outlook is Stable.

Concurrently, KBRA affirms the long-term rating of AA+ on outstanding City of New York General Obligation Bonds, and revises the Outlook to Stable from Negative. The Outlook revision reflects the timely adoption of a $125.8 billion FY 2027 budget (the “Adopted Budget”) that addresses approximately $8 billion in previously underbudgeted annual expenditures, balances Fiscal Years 2026 and 2027, incorporates enacted State support, and adds to the General Reserve without broad service reductions. While structural imbalance persists, the Adopted Budget’s approach for fiscal years 2026 and 2027, though heavily reliant on non-recurring resources and timing delays, is meaningfully improved from the Preliminary Budget framework of potential property tax increases and reserve draws that underpinned KBRA’s Negative Outlook, assigned on March 20, 2026.

Key Credit Considerations

Credit Positives