BOSTON'S
AAA BOND RATING AFFIRMED BY MOODY'S AND STANDARD AND POOR'S
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sound fiscal management, very strong economy
BOSTON - Tuesday, March 10, 2015 - Mayor Martin J.
Walsh today announced that both Standard and Poor's Rating Service and Moody's
Investor's Services have affirmed Boston's AAA bond rating, the highest
possible credit rating a City can receive. Both agencies cited the City's
sound fiscal management under Mayor Walsh's leadership and the strong and
growing local economy.
"These top credit ratings are a testament to the strong
fiscal management that we have implemented to strengthen our city now, and for
the long term," said Mayor Walsh. "We will continue to make smart
fiscal decisions that will allow our neighborhoods, schools and local economy
to thrive."
"The AAA rating reflects Boston's sound fiscal
management of a stable financial position and the city's substantial and
economically diverse tax base bolstered by strong government, health care and
higher education sectors," said the Moody's rating report.
"We consider Boston's economy very strong," said the Standard and Poor's rating report. "Boston is the 21st-largest city in the nation and the economic hub of New England. The city is the state capital and center for government-related activities. In addition, its economic strengths include world-renowned bio medical research capabilities, a large and broad-based high-tech and life science sector, and a substantial financial services sector. Supporting these strengths are a well-educated workforce and world-class higher education and academic medical centers, both within the city and surrounding area."
Additional factors for the favorable rating include:
"We consider Boston's economy very strong," said the Standard and Poor's rating report. "Boston is the 21st-largest city in the nation and the economic hub of New England. The city is the state capital and center for government-related activities. In addition, its economic strengths include world-renowned bio medical research capabilities, a large and broad-based high-tech and life science sector, and a substantial financial services sector. Supporting these strengths are a well-educated workforce and world-class higher education and academic medical centers, both within the city and surrounding area."
Additional factors for the favorable rating include:
· The city is the center of economic activity for
New England and boasts a substantial tax base of over $109 billion;
· Local unemployment below the national average at
4.5 percent;
· 272 projects in the pipeline at the Boston
Redevelopment Authority, totaling $23 billion in development costs;
· Projected per capital effective buying income at
126 percent of the national level;
· Strong budgetary flexibility with 2015 audited
available reserves in excess of 20 percent of general fund expenditures and no
plans to materially draw them down;
· Property taxes account for 63 percent of
revenue, and collections are strong and stable;
· Assessed values increased 10.9 percent, the
largest since 2007, attributable to 12 percent residential growth and 8.8
percent commercial growth.
Read the full reports here.
