Press Release: City of Annapolis Receives ‘AA+’ Credit Rating on 2025 Bond Issuance...

Press Release

City of Annapolis

Public Information Office

160 Duke of Gloucester Street

Annapolis, Maryland 21401

FOR IMMEDIATE RELEASE: Media contact: Mitchelle Stephenson, 410-972-7724 or mwstephenson @annapolis.gov

City of Annapolis Receives 'AA+' Credit Rating on 2025 Bond Issuance from S&P and Fitch; Moody's Affirms 'Aa1' Rating

ANNAPOLIS, MD (October 29, 2025) - The City of Annapolis had its highest-ever credit rating reaffirmed by the nation's top credit rating agencies ahead of the sale of $38.6 million in Series 2025 General Obligation (GO) Public Improvement Bonds. Both S&P Global Ratings and Fitch Ratings assigned the City an 'AA+' rating with a stable outlook, while Moody's Investors Service reaffirmed its 'Aa1' rating, reflecting continued confidence in the City's financial management and economic strength.

"These ratings reflect the financial discipline and responsible management practices that guide our budgetary decision-making," said Mayor Gavin Buckley. "Annapolis continues to invest in its future by strengthening infrastructure, improving resiliency, and maintaining financial stability for residents and businesses."

According to S&P Global Ratings, the 'AA+' rating reflects Annapolis' "strong, well-embedded management framework and policies that have contributed to robust financial performance and increasing reserves." The agency noted that the City's conservative budgeting, diversified tax base, and positive economic trends, anchored by the U.S. Naval Academy, state government, and maritime tourism, continue to support fiscal stability.

Fitch Ratings also assigned an 'AA+' rating with a stable outlook, citing Annapolis' "large, growing economy with a significant public sector presence, above-average resident wealth, and strong financial position." Moody's reaffirmed the City's 'Aa1' rating, highlighting similar credit strengths and describing Annapolis' finances as "strong and stable through 2026."

The 2025 bond proceeds will fund capital improvement projects across the City, including infrastructure upgrades and resiliency investments. Of particular note is the City's maintenance of manageable debt, with net direct debt representing approximately 8 percent of annual revenues, which is well within the City's debt capacity limit and supported by strong reserves and self-supporting portions of its debt.

Acting City Manager Victoria Buckland said, "maintaining these high ratings helps the City secure lower borrowing costs, meaning more of every taxpayer dollar goes directly toward community improvements and services."

Annapolis' financial outlook remains stable, with the City's reserve policies, long-term planning, and capital investment strategies continuing to serve as a model for fiscal stewardship among Maryland municipalities.

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