Standard & Poor's raised its rating on Boston's general obligation bonds to AAA from AA-plus, based on its local GO criteria.
S&P also assigned its AAA long-term rating to the city's GO bonds. The Massachusetts capital plans a $157.8 million Series A sale next week. The city intends to finance various city capital improvement projects.
The outlook on all the ratings is stable.
"The rating reflects our assessment of Boston's strong budgetary flexibility and performance, as well as its very strong liquidity," said S&P credit analyst Victor Medeiros.
Medeiros also cited Boston's deep, diverse economy, which anchors the state and broader New England; strong debt and contingent liabilities position, bolstered by the city's low debt-to-market value and aggressive amortization; and "still sizeable" pension and other postemployment benefit liabilities, although S&P acknowledges proactive management.
S&P expects not to change Boston's rating over the next two years.
According to Moody's Investors Service, which rates Boston Aaa, Boston has $918.4 million of debt outstanding. Fitch Ratings in July 2012 upgraded Boston to AAA.
