SYRACUSE — Standard & Poor’s (S&P) has upgraded the bond rating for the city of Syracuse from A- to A with a stable outlook, an “upgrade” from the previous rating of A- with a positive outlook.
Syracuse Mayor Stephanie Miner made the announcement in a news release Friday.
At the same time, Fitch Ratings also commended the city of Syracuse for “sound fiscal management,” Miner’s office said in the release.
The two agencies released the city’s updated bond ratings last week. Bond ratings assess the ability of a government or corporation to make timely payments on its debt and play a key role in determining borrowing costs.
The S&P and Fitch reports emphasize that the city of Syracuse is doing “everything it possibly can to control costs and make responsible decisions,” Miner contended in the release.
“They also underscore that the problems facing Syracuse, from state mandates to post-employment benefits, pose a significant risk to our future fiscal health if we do not get relief from these costs,” Miner noted.
In its report, S&P stated that it expects “the strong management to continue reducing budget gaps and maintaining flexibility,” according to Miner’s office.
The S&P report went on to say the city of Syracuse “has a limited ability to cut spending due to the high level of fixed costs and a limited capacity to raise revenue due to a dependence on state aid.”
Fitch Ratings affirmed the city’s rating of A with a stable outlook, which it assigned Syracuse in June 2013.
In its report, Fitch also noted pension and other post-employment benefits (OPEB) as “major pressures” on the city’s budget this year and in future years, Miner’s office said.
The city faces an “outstanding OPEB liability” that exceeds $900 million.
Contact Reinhardt at ereinhardt@cnybj.com