Article: Fitch Affirms New York State 'AA-' GO Rating; Outlook Positive.

NEW YORK -- Fitch affirms the 'AA-' rating and Positive Rating Outlook on outstanding New York State general obligation (GO) bonds following review of the first quarterly update to the state's financial plan.

In the update the state meaningfully reduced forecasts of tax revenues. The state now forecasts a $630 million general fund shortfall for the current fiscal year and a $1.3 billion increase in the fiscal 2010 gap estimate, to $6.35 billion (including a $310 million Health Care Reform Act (HCRA) shortfall). The revisions are a response to developments since the enacted budget and highlight the importance of the cyclical financial services industry to state ...

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