NYC Outlook Cut to Negative by S&P, Putting AA Grade at Risk

New York City had its credit rating outlook revised to negative by S&P Global Ratings Inc. as virus cases rise, threatening the economic revival of the nation’s largest city.

The negative outlook means New York has a one-in-three chance that its AA rating, the third-highest investment grade, will be lowered within two years, S&P said in a report on Tuesday. The virus uptick may lead to a targeted or widespread economic shutdown, dealing a blow to the city’s already weakened finances. The city’s seven-day positivity rate hit 4.98% Monday.

Although New York City largely kept the virus controlled since June ...