Mayor Wu Announces City of Boston Achieves Triple-A Bond Ratings for 12th Consecutive Year

Mayor Michelle Wu today announced that Boston has again maintained its triple-A bond ratings and stable outlook, as assigned by Moody’s Investor Service and S&P Global Ratings, in advance of its upcoming 2025 bond sale. Since 2014, the City has maintained 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 in the wake of uncertain economic times nationally. Mayor Wu’s FY26 budget, filed in April, underscores Boston’s strong fiscal management by enabling Boston to meet its long-term financial obligations while preserving the excellent City services residents and businesses depend on.

“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 what their report called a resilient economy that benefits from “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 in the wake of national uncertainty.

The recent S&P Global Ratings report reflected a similar stable outlook for Boston, noting “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 noted Boston’s position as an anchor in the region’s larger, robust economy and 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.”  

The City of Boston remains in a strong fiscal position due to consistent and responsible budget management that allows the City to routinely return budget surpluses. With over $300 million of federal funds supporting critical City services each year and with likely impacts from federal tariffs and other policy changes to the broader economy, the City 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 the fixed and long-term financial obligations, deliver for residents, and stay adaptable amidst shifting economic and federal dynamics.

“Boston has yet again secured a AAA bond rating, demonstrating the smart fiscal management of the city, even in challenging times nationwide. We stand out among our peer cities. It demonstrates that we can do the work of shared prosperity - investing in the needs of our residents and neighborhoods equitably while maintaining Boston’s status as a sound investment for investors,” 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," said 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 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.