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Standard & Poor's raised its ratings of New York's general obligation and appropriation-backed bonds Wednesday.  General obligations bonds ratings went from AA to AA+, and the appropriation-backed bond rating was upgraded from AA- to AA.  The rating upgrade follows in the wake of a similar upgrade from Moody’s Investors Service and Fitch Ratings.

"The new AA+ rating for the state’s General Obligation bonds reflects our recent history of on-time budgets, a well-funded pension system and spending restraint," New York State Comptroller Thomas P. DiNapoli said Wednesday.  "Over the past few years, much has been done to put New York on a more solid financial footing, but some budgetary challenges remain. The state still needs to do more to curtail future budget gaps by aligning recurring revenues and expenditures."

The upgrade is being credited, in part, to the 2014-2015 state budget being passed on time for the fourth consecutive year under the leadership of Governor Andrew Cuomo.  Investor confidence has risen steadily since Cuomo took office in 2011, according to Reuters.

"The state should build on the positive steps already taken to further strengthen its financial position," DiNapoli said.  "S&P also cites New York's strong and diverse economy of 19.7 million people, with income levels above the national average, but with a higher-than-average proportion of state income derived from the financial sector."

S&P's New York State rating is the highest it has been since 1972.

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