Moody’s Upgrades New York’s Prospects

ALBANY, N.Y. (AP) — A major bond rating service has upgraded its view on the future of New York's economy and government from stable to positive and continued to rate the state's $3.5 billion in general obligation bonds at Aa2.

Moody's Investors Service cited the state's resilience during and after the Great Recession, closing state budget gaps, reduction of government gridlock and its relatively well-funded public employee pension system for the brighter outlook.

But it also warned Thursday that the state's economy depends heavily on the health of the financial services industry, maintains relatively low fund balances that could make the budget vulnerable to volatility in revenue and using bonding in the past to cover deficit spending has left New York with tax-supported debt that is above average.