Annapolis Earns Top Credit Ratings For 2025 Bond Sale

The City of Annapolis has received some of the strongest credit ratings in its history ahead of a planned $38.6 million General Obligation (GO) Public Improvement Bond sale, reinforcing confidence in the City’s financial health and management. S&P Global Ratings and Fitch Ratings each assigned Annapolis an ‘AA+’ rating with a stable outlook, while Moody’s Investors Service reaffirmed its ‘Aa1’ rating.

“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.”

National Agencies Cite Strong Management And Stable Economy

S&P Global Ratings said the ‘AA+’ rating is supported by Annapolis’ “strong, well-embedded management framework and policies that have contributed to robust financial performance and increasing reserves.” The agency pointed to the City’s conservative budgeting practices, diverse tax base, and steady economic trends anchored by the U.S. Naval Academy, state government, and a strong maritime and tourism sector.

Fitch Ratings also issued an ‘AA+’ rating with a stable outlook, citing a “large, growing economy with a significant public sector presence, above-average resident wealth, and strong financial position.” Moody’s reaffirmed its ‘Aa1’ rating and described the City’s finances as “strong and stable through 2026,” noting similar strengths in Annapolis’ economic base and financial management.

Bond Proceeds Target Infrastructure and Resiliency

The Series 2025 GO Public Improvement Bonds will fund a range of capital projects across Annapolis, including infrastructure upgrades and resiliency investments designed to address long-term needs. The City’s debt profile remains manageable, with net direct debt at about 8 percent of annual revenues—well within established limits and supported by healthy reserves and self-supporting portions of its debt.

Acting City Manager Victoria Buckland emphasized the value of the strong ratings for residents. “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 Maintains Stable Financial Outlook

City officials say the high marks from S&P, Fitch, and Moody’s validate Annapolis’ approach to long-term fiscal planning. Reserve policies, multi-year capital plans, and a focus on resiliency projects have helped position the City as a leader in financial stewardship among Maryland municipalities.

With the 2025 bond issuance, Annapolis will continue investing in critical infrastructure while preserving its strong credit standing—supporting reliable services, sustainable growth, and a stable financial outlook for years to come.

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