City of Boston Achieves AAA Bond Ratings for Eighth Consecutive Year
Mayor Michelle Wu today announced that Boston has maintained its triple-A bond ratings, as assigned by Moody’s Investor Service and S&P Global Ratings, in advance of its upcoming 2022 bond sale. Since 2014, the City has received the top credit rating from both rating agencies. The agencies’ affirmations of Boston’s strong financial health is a recognition of the City’s strong fiscal management before and during the pandemic, despite its significant impact on the City.
“This moment calls for vision and urgency to use our resources creatively and effectively in addressing our biggest challenges,” said Mayor Michelle Wu. “I’m proud that Boston can make bold investments in our communities while maintaining our city’s strong financial health.”
In their report, S&P Global Ratings assigned its AAA long-term rating to the City of Boston based on “very strong financial management environment with well-embedded policies and practices and a strong institutional framework.” The report also cited Boston’s proactive approach to addressing risks like “weather- and climate-related events, infrastructure and housing, retirement costs, and stagnant intergovernmental aid growth.” S&P concludes that this “proactive approach, tied to the continued improvement in the economy, will allow it to maintain financial balance over the long term.”
According to Moody’s Investors Service, Boston’s Aaa rating reflects strong fiscal management, the City’s healthy financial position and Boston’s position as the regional economic center of New England. The report also expects that Boston’s tax base will remain stable while the economy continues to recover from the pandemic and continues to grow despite recent global economic challenges.
“Mayor Wu has continued Boston’s strong commitment to proactive financial management that has allowed the City to navigate uncertain fiscal times brought on by the COVID-19 pandemic,” said Justin Sterritt, Chief Financial Officer for the City of Boston. “Today’s credit ratings reflect that under Mayor Wu’s leadership the City can make bold investments to address the long-term needs of the City while maintaining sound financial practices.”
The City expects to go to market on the sale of its 2022 series bonds the week of March 27th, 2022. The upcoming bond sale is expected to generate $330 million in new funding towards critical housing, climate and infrastructure projects throughout the City. The City’s issuance will support affordable housing projects in partnership with the Boston Housing Authority. The funding will also support major Boston Public Schools projects, like the construction of the new Boston Arts Academy and the new Josiah Quincy Upper School, and vital building upgrades at schools across the City.
In addition, the upcoming bond sale will support the mitigation of sea-level rise at the renovated Curley Community Center, fund a new phase of the Renew Boston Trust, help finance major park improvements at Garvey Park in Dorchester and Malcolm X Park in Roxbury, and the climate resiliency aspects of the recently completed renovation of Langone Park in the North End. The bond sale will also include significant funding for the renovation and reactivation of City Hall Plaza, which will serve as a catalyst for civic and community engagement.
Today’s ratings reflect Mayor Wu’s commitment to financial responsibility, while making bold investments that address the needs of the community throughout the City of Boston. The Wu Administration along with the City Council has previously hosted a Budget Listening Tour and will be unveiling the FY23 Budget in April.
The City also maintains a dedicated investor outreach platform, BuyBostonBonds.com. The website is a part of the City’s continued efforts to optimize financial disclosure and is designed to drive investment in Boston’s bonds, which help pay for capital projects and investments the City makes. Note that any offer or solicitation with respect to the Bonds will be made solely by means of a preliminary or final official statement.