(Bloomberg) — Bond investors should be confident in New York City’s finances despite the indictment of Mayor Eric Adams on bribery charges and investigations into key members of his administration, city Comptroller Brad Lander said.
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The city’s $112 billion budget and the management of roughly $95 billion in debt are in the hands of experienced professionals that “operate independently of political winds,” Lander said in a statement. The city plans to sell $1.5 billion of general obligation bonds on Oct 9 to finance affordable housing and capital projects. Bank of America Corp. is leading a group of banks in underwriting the debt.
“During times of historic challenges to New York City and the nation – in the wake of 9/11, the global financial crisis, and the COVID-19 pandemic – the City continued to issue debt and pay debt service on time,” Lander said in a statement. “Long-established policies that ensure strong discipline and governance have carried the City through numerous challenges. This will be no different.”
Adams was charged last week with accepting more than $100,000 in bribes from foreign nationals over a decade-long stretch, in exchange for acting to benefit officials with ties to the Turkish government. Federal prosecutors also charged Adams with secretly accepting illegal contributions to his 2021 campaign. Adams, the city’s second Black mayor, has rejected calls from fellow Democrats, including Lander, for his resignation.
Lander is among a half-dozen candidates vying to replace Adams.
Lander’s comment echoed those of Wall Street credit rating companies. Moody’s Ratings, S&P Global Ratings and Fitch Ratings said they expect the city to maintain its strong budget and fiscal management.
Many city agency staff have decades of experience in local government and have served in high-level positions across various administrations, said Moody’s analyst Nick Samuels.
“This ensures a high degree of continuity, particularly in agencies critical to budgeting, finance, and debt administration,” he said.
(Update with comments from rating analysts in last three paragraphs.)
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