JPMorgan Flags Higher NYC Credit Downgrade Risk

JPMorgan strategists warn that New York City’s credit downgrade risk has risen as state likely won’t approve new tax measures.
The city faces an estimated $5.4 billion two‑year budget deficit, with Moody’s and Fitch already shifting their outlook to negative.
New York City currently holds an Aa2 rating from Moody’s and AA from S&P and Fitch, the third‑highest investment‑grade level.
State showed reluctance to approve major personal and corporate tax hikes needed to close gaps.