~ Boston Maintains Triple-A Bond Ratings and Stable Outlook Ahead of 2025 Bond Sale

Boston, MA - Mayor Michelle Wu announced today that the city has once again maintained its triple-A bond ratings and stable outlook from both Moody's Investor Service and S&P Global Ratings. This comes as the city prepares for its upcoming 2025 bond sale. Boston has held the top credit rating from both agencies since 2014, a testament to its strong fiscal management in the face of uncertain economic times nationally.

Mayor Wu's proposed budget for FY26, filed in April, highlights Boston's strong financial health by ensuring the city can meet its long-term financial obligations while continuing to provide excellent services to residents and businesses.

"This is the highest possible rating a city can earn and a sign and affirmation that our economic fundamentals are strong and that our local economy is resilient, vibrant, and growing," said Mayor Michelle Wu. "This rating means we are able to get the best possible rates when we make critical investments in our city's infrastructure from our schools to our fire stations. As the current federal administration sows economic chaos and targets the industries that Boston relies on, Boston remains determined to fight back."

According to Moody's Investors Service, Boston's Aaa rating reflects a resilient economy supported by "a healthy mix of industries anchored by significant and world-renowned higher education and healthcare institutions." The report also noted Mayor Wu's budget proposal and a stable economic outlook for the city despite national uncertainty.

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Similarly, S&P Global Ratings' recent report also reflected a stable outlook for Boston, stating that "the city's comprehensive budget framework, combined with proactive management, will enable it to maintain structural balance in the near term, despite significant policy uncertainty." The analysis also recognized Boston as an anchor in the region's larger robust economy with proactive budget management policies.

"Fiscal discipline is not new to Boston, and this rating action from Moody's and S&P acknowledges the city's strong financial position and long-standing fiscal management practices," said Ashley Groffenberger, Chief Financial Officer. "The city has earned these ratings through years of diligent budget management, which has allowed us to manage through challenging economic cycles and will put us in the best position to manage future uncertainty. I want to thank the dedicated staff of the Finance Cabinet for the work they do every single day to preserve this rating."

Boston's consistent and responsible budget management has kept the city in a strong fiscal position, allowing it to routinely return budget surpluses. With over $300 million of federal funds supporting critical city services each year and potential impacts from federal tariffs and other policy changes on the broader economy, Boston is exercising caution in this year's budget to ensure stability for residents and essential city services. The Fiscal Year 2026 annual operating budget filed by Mayor Wu is $4.8 billion, and the five-year 2026-2030 Capital Plan is $4.5 billion. By slowing budget growth, Boston will continue to meet its fixed and long-term financial obligations while delivering for residents and remaining adaptable amidst shifting economic and federal dynamics.

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"Once again, Boston has secured a AAA bond rating, showcasing our smart fiscal management even in challenging times nationwide. We stand out among our peer cities," said City Council President Ruthzee Louijeune.

"Thanks to the city's track record of smart budgeting over several administrations, Boston remains fiscally strong, and these bond ratings are further evidence of that," added Councilor Brian Worrell (District 4), Chair of the Committee on Ways & Means. "I look forward to ensuring we continue to invest in city services while overseeing our budget to safeguard our residents from higher tax burdens."

The City typically issues bonds at least once per year and expects to go to market on the sale of its 2025 General Obligation bonds during the week of May 19, 2025. The upcoming bond sale is expected to generate $500 million in new funding towards nearly 200 capital projects in the city, including new and renovated schools, major park and playground renovations, new libraries, community centers and pools, energy improvement projects, and other state of good repair and infrastructure projects.

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