August 20, 2020 – In a note issued last week, Moody’s Investor Service opined that reopened schools would be credit positive for New York State, City and the Metropolitan Transportation Authority (MTA).

The analysts said that reopenings would allow parents to return to work, helping boost sales tax revenues that fund local government, school district and county operations.

Moody’s noted many offices will remain close, but if schools remained close, a resumption of economy activity could be further delayed.

With the Empire State is experiencing declining COVID-19 infections – the lowest average daily new infections per 100,000 residents among the 22 largest U.S. cities – Moody’s cautioned infection rates, if they were to increase again, could negatively impact growth in economic activity.

Following the COVID-19 crisis, Moody’s revised its outlook on New York State and City in April to “negative”, citing many economic uncertainties stemming from the virus outbreak and resultant business closures.

Contact Caren Moses at CMoses@buymuni.com.