Boston maintains perfect AAA bond rating
Mayor Martin J. Walsh today announced Boston has maintained its perfect AAA bond rating, as assigned by Moody's Investor Service and S&P Global Ratings. The City has maintained the top credit ratings from both rating agencies since 2014.
According to Moody's Investor Service, Boston's AAA rating reflects the city's strong fiscal management and stable financial position, as well as its large and growing tax base with economic diversity bolstered by significant government, higher education and healthcare sectors. The rating also takes into account Boston's conservatively managed debt profile and its planning efforts with respect to its pension obligations.
"In Boston, we're committed to creating opportunities for all, and lifting up Boston's working families," said Mayor Walsh. "To do that, we need to maintain a strong fiscal foundation that allows us to invest in the programs and policies that make a difference. I'm proud Boston once again has achieved a AAA bond rating, allowing us to continue successfully planning for our city's future."
"By tackling our long-term liabilities, controlling costs and using data to drive city spending, the Mayor has prioritized strong financial management," said Emme Handy, Chief Financial Officer for the City of Boston. "This bond rating highlights our commitment to Boston's long-term prosperity as we continue to make record investments in our priorities."
S&P Global Ratings cites Boston's "very strong" economy as reason for its AAA rating. Contributing to Boston's strong economy is its talented, diverse workforce; longstanding financial and insurance industries, as well as the city's growing reputation as a tech hub; central location; and recruitment and retainment of college graduates in the city. In addition, S&P also highlighted Boston's history of proactively addressing future challenges through the city's long-term plans. Included in these highlights are Boston's Climate Action Plan, which addressing goals for reducing greenhouse emission by 2050; Climate Ready Boston, which develops resilient solutions to prepare Boston for climate change; Go Boston 2030, which aims to ensure equitable, reliable and safe transportation for all residents; and Housing a Changing City, Boston's housing plan which already is well on its way to creating 53,000 new units of housing by 2030.
These ratings build on Mayor Walsh's commitment to financial responsibility throughout the City of Boston. Over the past five years, Boston's revenue has grown by 25 percent, and the city has added 80,000 new jobs over the last four years. Boston also recently launched Boston's new investor outreach platform, BuyBostonBonds.com. The new website is the latest step in the city's continued efforts to optimize financial disclosure and is designed to drive investment in Boston's debt, which helps pay for capital projects and investments the City makes. More information about this platform and what it means for investors and residents is also available here.
Last month, Mayor Walsh presented his Fiscal Year 2019 (FY19) budget proposal, a plan that affirms a commitment to progress, opportunity and innovation by investing in Boston's neighborhoods, while building on the City's strong record of proactive fiscal management. The $3.29 billion plan builds on the Walsh Administration's commitment to accelerating progress in key areas, investing in a growing middle class through strong 21st-century schools; good jobs; affordable homes in safe neighborhoods; providing pathways to opportunities; supporting public safety for a growing city; and improving core city services to benefit all residents.