Another two top bond-rating companies have warned that New York City’s finances are looking grim if the freshman mayor’s budget calling for drawing down reserves is enacted.
Fitch Ratings and Kroll Bond Rating Agency issued a negative outlook for the Big Apple’s bond rating Friday — following suit with Moody’s. which made the same projection last week.
The agencies did not downgrade the rating but are warning if Mayor Zohran Mamdani’s $127 billion budget passes. they likely will.
The budget calls for raiding the city’s rainy day funds and other savings to a tune of $2.6 billion over the next two years to pay at least partly for the Democratic socialist’s programs.
“A negative outlook from a credit rating agency is not a downgrade—but it is a warning,” said city Comptroller Mark Levine.
“With today’s revisions from Fitch and Kroll now 3 of our 4 ratings agencies are sending us a similar message: New York City needs to address the underlying structural imbalances in our budget.”