NEW YORK, NY May 18, 2005 —The city has received it's highest-ever rating from credit evaluator Standard & Poor's. The move could lower the city's cost of borrowing money by millions of dollars. WNYC's Fred Mogul has more.

S&P raised the city's credit rating by one level, to A-plus. In a statement, an analyst for the firm says the city continues to face shortfalls in the years ahead. But the city was credited for reducing financial risks by balancing the budget.

Mayor Bloomberg this month released a budget plan that counts on a multi-billion dollar surplus this year to close next year's budget gap. The upgrade on $32 billion worth of bonds follows a similar move by one of the other major credit rating agencies, Moody's Investors Service.

Moody's last month raised its rating on city debt last month by a notch to A1--its highest rating ever for the city.