Cambridge Awarded Three AAA Ratings for 25th Consecutive Year

The City of Cambridge has retained its distinction of being one of approximately 24 cities in the United States to earn AAA ratings from each of the nation's three major credit rating agencies. For 25 consecutive years, the City has received these noteworthy ratings annually from Moody's Investors Service, S&P Global Ratings, and Fitch Ratings.

In determining the City’s credit rating, the rating agencies consider criteria related to the City’s management, the strength of the local economy, the city’s financial condition and reserves, and debt burden. The rating agencies highlighted the City’s strong management and fiscal practices, financial flexibility, formal policies, budgetary stability, and healthy reserves.

"Being awarded three AAA ratings for 25 consecutive years is an impressive accomplishment that the City is incredibly proud of," said City Manager Yi-An Huang. "It is the result of a collaborative effort between the City's finance team, City departments, and the City Council to maintain and follow strong fiscal policies and practices. We have been able to leverage our community, institutional, and local economic strengths to build up reserves and maintain a level of financial strength and flexibility that is unique in the Commonwealth. By demonstrating a long trend of strong fiscal management, we remain well-positioned to continue to make significant investments in the community while sustaining fiscal health and stability.”

The following are highlights from the credit rating agencies:

Moody’s Investors Service
The city's strong economy and resilient housing market is expected to maintain tax base stability beyond next year. The city’s financial position is very healthy with large reserves and liquidity that are maintained by formal policies and conservative fiscal management.

S&P Global
The city's management team operates with established and well-embedded policies and procedures with a focus on forward-looking planning that allows for key city priorities to be addressed while sustaining financial stability and flexibility.

Fitch Ratings
Cambridge's rating reflects Fitch Ratings’ expectation for it to maintain a high level of financial flexibility through economic cycles, consistent with a history of strong operating performance and budget controls.

The favorable credit ratings that the City has consistently received play a direct role in limiting the burden placed on taxpayers in the community, while also providing and maintaining the ability to make major investments in key initiatives and community priorities. On March 6, 2024, the City conducted a competitive sale of $180.1 million in General Obligation bonds. Capital projects funded through this bond issuance include Tobin and Vassal Lane Upper Schools construction, open space and path projects, Fire Station headquarters, Harvard Square Kiosk and surface improvements, Central Square reconstruction, municipal facilities, school building repairs, street and sidewalk reconstruction, and sewer reconstruction. All of these projects reflect essential investments for the future and reflect City Council and community priorities.

The Moody's, S&P's, and Fitch credit reports are available on the City’s website.

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