Cambridge Receives 3 AAA Credit Ratings

CAMBRIDGE, MA – The city of Cambridge has earned AAA ratings from each of the country's three major credit rating agencies for the 19th consecutive year. It is one of approximately 33 municipalities nationwide to receive top ratings this year.

Each year since 1999, the city has earned AAA ratings from Moody's Investors Service, Standard & Poor's and Fitch Ratings.

"I want to recognize the City Council for adopting and maintaining sound fiscal policies, and City department heads and staff for their commitment to prudently managing their budgets and programs," City Manager Louis A. DePasquale said in a press release. "One of the factors in the City receiving these ratings is our strong and dedicated team."

The AAA ratings are in conjunction with the city's sale of $90.9 million in General Obligation bonds and $2.5 million in minibonds, which will finance capital projects like sewer reconstruction, street and sidewalk reconstruction, and other municipal and school building renovations.

The consistent AAA rating has enabled the city to finance a variety of major capital projects at very favorable rates that, in turn, result in taxpayer savings, according to the city.

As Cambridge is poised to embark on a significant increase in debt issuance over the next few years to fund the school rebuilding program, the AAA rating will play a significant role in the city being able to secure the most favorable interest rates, saving Cambridge taxpayers millions of dollars, officials said.

"We take a long-term approach to our fiscal planning," DePasquale said. “We’ve built significant reserves which in part serve as the City’s insurance policy; and our fiscal strategies and management practices have real impacts on Cambridge taxpayers. Our financial success is only possible because of the collaboration that occurs between the City Council and the City Administration."

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