Boston Obtains AAA Bond Grade From Standard & Poor’s on EconomyRomy Varghese
Almost a year after a terrorist attack killed three people at the Boston Marathon, the city’s credit rating was raised to the top grade by Standard & Poor’s.
The company cited the Massachusetts capital’s budget flexibility and diverse economy. S&P gave the municipality of about 636,000 a stable outlook, calling it the “anchor for the state and the broader New England region,” according to a report yesterday from Victor Medeiros, an analyst at the firm.
“Boston’s strong underlying economy, very strong management, and predictable operating profile should translate into strong budgetary performance and operating flexibility over our outlook horizon,” Medeiros said in the report.
New York, the most populous U.S. city, is rated two steps lower at AA, while Los Angeles, the second-biggest, is three steps below the top at AA-, according to S&P.
The most populous city with the top grade is San Antonio, with almost 1.4 million residents, according to S&P. The company gives the AAA mark to six cities among the nation’s 25 biggest.
Boston is scheduled to sell $158.5 million in tax-exempt bonds next week, data compiled by Bloomberg show. Proceeds would fund capital improvements, S&P said.
Moody’s Investors Service also gives Boston its top grade.
Mayor Martin Walsh’s press office didn’t immediately respond to an e-mailed request for comment.
The bombs that exploded on April 15 last year near the marathon’s finish line were the first deadly terrorist attack in the U.S. since Sept. 11, 2001.