S&P Global Ratings revised New York City's outlook to stable from negative while maintaining an AA rating on the city's general obligations bonds.
"The outlook revision reflects our view of the substantially reduced uncertainty of credit stress stemming from the pandemic and greater clarity of the city's credit quality trajectory," said an S&P report published Tuesday.
S&P cited several reasons for raising its outlook, including successful vaccination efforts, expectation for a recovery in domestic tourism and the injection of more than $15 billion in federal stimulus aid.
The report also referenced maintaining higher than expected reserves and establishing a rainy day fund with more than $490 million in fiscal 2022.
The city's pension system was barely mentioned in the report. "Positive pension governance is offset by another post-employment benefit obligation equal to $109.5 billion and the lack of a plan to sufficiently address the obligation," the report said, referring to retiree health benefits.
