New York City’s Rating Outlook Cut to Negative by Moody’s (1)

Moody’s Ratings lowered its outlook on New York City to negative, citing the “sizable and persistent” budget shortfalls it’s facing.

The ratings company affirmed its Aa2 rating on the city’s debt, the third-highest level of investment-grade. Moody’s said the change came after the city’s spending projections showed larger budget shortfalls than previously forecast.

“The negative outlook reflects the emergence of sizable and persistent projected budget gaps that signal underlying structural imbalance and reduced financial flexibility, despite New York City’s still favorable economic conditions,” Moody’s analysts said in a statement Wednesday.

Dora Pekec, a spokesperson for Mayor Zohran Mamdani, said ...