Currently the debt service for the City, TFA FTS, and City appropriation debt, or conduit debt, excluding the effect of prepayments, is 6.3 percent of the City’s total budgeted revenues in 2021. That ratio is projected to rise to 9.3 percent in 2025. As a percentage of tax revenues, the debt service ratio is 10.2 percent in 2021 and is projected to increase to 13.5 percent in fiscal year 2025.

All of the issuers financing the City capital program have maintained credit ratings in the AA category or better by Moody’s, S&P, and Fitch, as indicated in the table below. Following the economic uncertainty surrounding COVID-19, Moody’s and Fitch downgraded the City’s general obligation bonds and its related appropriation credits. Furthermore, Moody’s, Fitch, as well as S&P currently have the City’s general obligation bonds on negative outlook. Additionally, for TFA, the FTS bonds are on negative outlook by Moody’s. The BARBs were downgraded by Moody’s to Aa3 and are on negative outlook by S&P and Fitch due to the BARBs relationship to the State budget. The outlooks for NYW and bonds issued on behalf of NYW by EFC, however, remain stable. Despite the downgrades and negative outlooks, the entities financing the City’s capital program have maintained reliable market access to finance capital spending and undertake refinancing transactions, as discussed later.