They’re in a bad Moody’s.

Major debt-rating agency Moody’s warned investors that it could soon to downgrade New York City’s credit rating — as critics railed that Mayor Zohran Mamdani can’t keep spending like there’s no tomorrow.

The agency on Wednesday changed changed the city’s credit status to negative from stable, the first step in potentially lowering the Big Apple’s AA issuer rating. 

Lowering the rating would be major blow to the city, likely triggering increased borrowing costs.

“They need to save some money, and they have not shown anybody where they’re going to do any savings,” said Bill Cunningham, a veteran Democratic operative who worked for ex-Mayor Michael Bloomberg and former Gov. Mario Cuomo.

The change comes as Mamdani pitches a record-breaking $127 billion spending plan for the 2027 fiscal year that includes major asks – and few substantial cuts – as he sounds the alarm on the city’s worrisome budget gap.

Hizzoner has warned he’ll hit property owners with a nearly 10% tax hike if Albany doesn’t pass an increased levy on the wealthy, and that he will also have to pull from the city’s “rainy day fund” savings accounts to help fill the estimated $5.4 billion deficit.

“The negative outlook reflects the emergence of sizable and persistent projected budget gaps that signal underlying structural imbalance and reduced financial flexibility, despite New York City’s still favorable economic conditions,” Moody’s said in a statement.

City Comptroller Mark Levine called it a “sobering wake-up call.”

“It is the first negative outlook the City has received since the COVID crisis,” he said. “The fact that this is happening at a time of relative health in our local economy is all the more remarkable.”

“The underlying challenge is clear: New York City is currently spending more than it is bringing in,” he added. “The fact that the preliminary budget achieves balance only by drawing down reserves underscores the need for a more sustainable fiscal plan.”

Under former Mayor Eric Adams, the city repeatedly received positive reviews from the four debt-rating agencies, and repeatedly touted the accomplishment.

A former Adams official lambasted his successor Mamdani’s team for potentially squandering the city’s sterling credit.

“This is what happened when you hit reserves and don’t replace them,” the official, who asked not to be named, said. “It’s Municipal Budgeting 101.”

Another former top city official suggested that Mamdani’s budget gambit was a power play from his First Deputy Mayor Dean Fuleihan to force Albany to deliver more funds or allow the city to raise taxes.

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But while Fuelihan’s experience working for state Assembly speakers such as Sheldon Silver may help him divine Albany’s reaction, he apparently misjudged the response from rating agencies, the former official said.

“When you threaten to dip into the reserves, rating agencies will react negatively. They had to know that,” the source said.

City Council Speaker Julie Menin and Councilwoman Linda Lee, who chairs the body’s finance committee, also implicitly blasted Mamdani for proposing to tapping the rainy day fund.

“Tapping a reserve that has never been used since its creation would send the wrong signal at a moment when the City’s fiscal discipline is under heightened scrutiny which is why the Council rejected this approach,” they said in a joint statement. 

“The responsible path forward is not to deplete our financial safety net, but to pursue real efficiencies and sustainable solutions.

Mamdani served up meandering word salad in response to the potential rating slide, zigzagging from a defense of economic justice to the upcoming World Cup in the metro area before landing on a soft-touch criticism of the decision.

“I think that the decision to revise the outlook, frankly, is premature,” he said during an unrelated press conference Thursday.

A City Hall rep downplayed the move as “premature,” arguing state legislature’s one-house budgets signal Albany will soon ship out $5 billion and bail the city out.

“These proposals reflect a real commitment by Albany to investing in the services New Yorkers rely on, and the fiscal health of our city,” the spokesperson said.