{"id":161449,"date":"2026-03-12T15:15:12","date_gmt":"2026-03-12T15:15:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/161449\/"},"modified":"2026-03-12T15:15:12","modified_gmt":"2026-03-12T15:15:12","slug":"nycs-credit-rating-on-downslide-as-moodys-sounds-alarm-over-budget-gaps","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/161449\/","title":{"rendered":"NYC\u2019s credit rating on downslide as Moody\u2019s sounds alarm over budget gaps"},"content":{"rendered":"

A major debt-rating agency\u00a0warned investors Wednesday that it may soon to downgrade New York City\u2019s credit rating \u2014 a major blow to the Big Apple that would trigger increased borrowing costs.<\/p>\n

Follow live updates on Mayor Zohran Mamdani\u2019s socialist agenda and the latest in NYC politics<\/a><\/p>\n

Moody\u2019s Ratings said it has changed the city\u2019s credit status from stable to negative, the first step in potentially lowering its Aa2 issuer rating.<\/p>\n

\u201cThe negative outlook reflects the emergence of sizable and persistent projected budget gaps <\/a>that signal underlying structural imbalance and reduced financial flexibility, despite New York City\u2019s still favorable economic conditions,\u201d the agency said.<\/p>\n

\"ZohranA major debt-rating agency\u00a0warned investors Wednesday that it may soon to downgrade New York City\u2019s credit rating \u2014 a major blow to the Big Apple that would trigger increased borrowing costs. Lone Pine Press for NY Post<\/p>\n

The potential rating slide, which warns lenders that the city could be a riskier client, leading to higher interest rates, comes as Mayor Zohran Mamdani pushes his massive $127 billion budget.<\/p>\n

Hizzoner\u2019s budget includes slapping property owners with a 10% tax and and the draining of city savings accounts to cover the ballooning financial plan that he proposed last month with few cuts.<\/p>\n

Mamdani has used his unpopular revenue generator to put pressure on Gov. Kathy Hochul to bail out the city through increased taxes on the state\u2019s highest earners and corporations.<\/p>\n

City Comptroller Mark Levine called the news a \u201csobering wake-up call.\u201d<\/p>\n

\"AerialMoody\u2019s Ratings said it has changed the city\u2019s credit status from stable to negative, the first step in potentially lowering its Aa2 issuer rating. AFP via Getty Images<\/p>\n

\u201cIt is the first negative outlook the\u00a0City\u00a0has received since the COVID crisis,\u201d he said. \u201cThe fact that this is happening at a time of relative health in our local economy is\u00a0all the more\u00a0remarkable.\u201d<\/p>\n

\u201cThe underlying challenge is clear: New York City is currently spending more than it is bringing in,\u201d he added. \u201cThe fact that the preliminary budget achieves balance only by drawing down reserves underscores the need for a more sustainable fiscal plan.\u201d<\/p>\n

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Under Mayor Eric Adams, the city repeatedly received positive reviews from the four debt-rating agencies, and repeatedly touted the accomplishment.<\/p>\n

A City Hall<\/a> rep downplayed the move as \u201cpremature,\u201d saying state legislature\u2019s one-house budgets signal Albany will soon ship out $5 billion and bail the city out.<\/p>\n

\u201cThese proposals reflect a real commitment by Albany to investing in the services New Yorkers rely on, and the fiscal health of our city,\u201d the spokesperson said. \u201cWe look forward to continuing our productive conversations with our partners in Albany and the City Council as we work to close the inherited deficit and restore the city to firm financial footing after years of underbudgeting and mismanagement.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"A major debt-rating agency\u00a0warned investors Wednesday that it may soon to downgrade New York City\u2019s credit rating \u2014…\n","protected":false},"author":2,"featured_media":161450,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[7739,14927,20604,57,9,56,63,65,64,58,82],"class_list":["post-161449","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-budget","tag-city-budget","tag-credit-rating","tag-metro","tag-new-york","tag-ny","tag-nyc","tag-nyc-headlines","tag-nyc-news","tag-us-news","tag-zohran-mamdani"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/161449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=161449"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/161449\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/161450"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=161449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=161449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=161449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}