JPMorgan Sees Higher NYC Downgrade Risk Amid Tax Pushback (2)

New York City’s risk of seeing a credit-rating downgrade has increased, according to JPMorgan Chase & Co. strategists.

As New York State looks less likely to approve major personal and corporate tax hikes that would help the city overcome its expected budget gaps, the analysts say that revenue options look limited.

“We believe downgrade risk, which was already elevated, has increased as Albany appears unlikely to approve meaningful new revenue sources,” JPMorgan strategists led by Peter DeGroot wrote in a report published Friday.

Moody’s Ratings and Fitch Ratings have already revised their outlook on the city to negative, as ...