S&P affirms Buffalo’s A+ bond rating but changes outlook to negative, finance committee told

S&P Global affirmed Buffalo’s A+ general obligation bond rating but revised the city’s outlook from stable to negative, the city’s deputy controller told the Finance Committee on Sept. 23.

Deputy Controller Delano O’Dell said the S&P review — requested as part of market preparations — attributed the outlook change to “financial challenges following a significant reserve drawdown” and the city’s continued reliance on one‑time revenues to close budget gaps. He told the committee S&P noted that the outlook could be revised to stable if the city achieves structural balance, improves ongoing revenues, or reduces expenses while maintaining reserves comparable to rated peers.

Committee members asked how the outlook change could affect borrowing costs. O’Dell said the immediate effect was an outlook change only and that S&P affirmed the A+ rating; however, he warned that continued fiscal deterioration could lead to a downgrade that would raise borrowing costs. Council members used the item to urge reforecasting, immediate expense controls and broader plans to reduce reliance on one-time measures.

Procedural actions recorded during this item included a motion to open discussion (seconded by Council member Bowman), motions to close discussion, and a motion to table further consideration (later seconded by Council member Everhart); the committee moved to table the item after discussion.

No formal rating action was taken by the committee; the S&P report is an independent rating agency action and was presented for the committee’s information.