New York’s Credit Outlook Raised to Positive by S&P on Budgets

New York, where Governor Andrew Cuomo pushed through two consecutive on-time state budgets for the first time since 2006, had its credit outlook raised to positive by Standard & Poor’s.

The rating company said in a report today that it was revising from stable the state’s AA rating on general-obligation debt. Cuomo also has restrained Medicaid spending growth, cut school funding costs and instituted a pension overhaul that boosted the retirement age to 63 from 62 for new workers, S&P said in an e-mailed statement.

“We base the outlook revision on what we view as the state’s movement toward structurally balanced budgets in the past two years,” David Hitchcock, an S&P analyst, said in the statement.

S&P said its rating on New York, whose 19.4 million residents make it the third-most-populous U.S. state, could be raised if it produces balanced budgets over the next two years. Josh Vlasto, a Cuomo spokesman, declined to comment immediately.

The outlook revision is the latest victory for Cuomo since the 54-year-old Democrat took office in 2011. In addition to the balanced budgets, he has pushed through a divided Legislature a bill legalizing same-sex marriage and a property-tax cap.

To contact the reporters on this story: Freeman Klopott in Albany, New York, at fklopott@bloomberg.net

To contact the editor responsible for this story: Stephen Merelman at smerelman@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.