{"id":162498,"date":"2026-03-13T16:26:07","date_gmt":"2026-03-13T16:26:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/162498\/"},"modified":"2026-03-13T16:26:07","modified_gmt":"2026-03-13T16:26:07","slug":"sp-credit-rating-firm-becomes-2nd-to-sound-alarm-over-nyc-finances-under-mamdani","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/162498\/","title":{"rendered":"S&P credit rating firm becomes 2nd to sound alarm over NYC finances under Mamdani"},"content":{"rendered":"

A second credit rating agency has raised serious concerns over the Big Apple\u2019s massive budget plan under Mayor Zohran Mamdani<\/a> that calls for draining the city\u2019s savings accounts.<\/p>\n

S&P Global Rating \u2014 one of the \u201cBig Three\u201d firms in the credit rating sector \u2014 warned Monday that it may downgrade the city\u2019s financial health if Mamdani balances his $127 billion proposed budget<\/a> by pulling from the city\u2019s reserves meant for dire circumstances.<\/p>\n

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

\u201cWe believe the city has previously demonstrated resilience to weather fiscal challenges without deterioration of its credit quality,\u201d the agency wrote in its report, first reported by Politico on Friday.<\/p>\n

\u201cThat said, downside risk to our rating on New York City (GO debt: AA\/Stable) could materialize if we believe two conditions persist: the city relies on nonrecurring budget solutions that fail to reduce the structural mismatch between recurring revenue and expenditures; and the city\u2019s reserves erode to a point where its capacity to absorb an economic downturn or a federal funding shock is materially diminished.\u201d<\/p>\n

\"ManA second credit rating agency has raised serious concerns over the Big Apple\u2019s massive budget plan under Mayor Zohran Mamdani that calls for draining the city\u2019s savings accounts.<\/p>\n

The news comes after another credit rating agency, Moody\u2019s, warned<\/a> on Wednesday that it was eyeing downgrading the city\u2019s credit rating to negative from stable.<\/p>\n

A downgraded bond rating would send borrowing costs spiking, creating a serious financial issue for the city.<\/p>\n

S&P, which like Moody\u2019s, still maintained the city\u2019s AA rating, also said it may not be smart for the city to rely on Albany for a bailout<\/a>, which Mamdani has repeatedly said is something that\u2019s in the works.<\/p>\n

The state has its own future budgetary issues as federal funding cuts loom, according to the agency.<\/p>\n

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\u201cTherefore, a potential constraint for the city is the state\u2019s fiscal capacity and appetite to provide additional one-time or long-term resource commitments approving new revenue measures that replace federal dollars.\u201d<\/p>\n

At odds is Mamdani\u2019s proposal to draw $2.6 billion from savings and trusts, leaving the city vulnerable to any sort of economic slowing or downturn.<\/p>\n

The young socialist mayor proposed his massive $127 billion budget last month, with no savings or cost-cutting spelled out, while calling for property taxes to be hiked by nearly 10%.<\/p>\n

He\u2019s used the budget to put pressure on Gov. Kathy Hochul<\/a> to increase taxes on the highest earners<\/a> and corporations. The governor has repeatedly refused to raise taxes as she seeks re-election in November.<\/p>\n","protected":false},"excerpt":{"rendered":"A second credit rating agency has raised serious concerns over the Big Apple\u2019s massive budget plan under Mayor…\n","protected":false},"author":2,"featured_media":162499,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[14927,20604,57,9,24,56,63,65,64,58,82],"class_list":["post-162498","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-city-budget","tag-credit-rating","tag-metro","tag-new-york","tag-new-york-city","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\/162498","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=162498"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/162498\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/162499"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=162498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=162498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=162498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}