S&P Assigns Montgomery AA Rating, Stable Outlook on Proposed $375 Million Bond Issuance

New independent review reinforces City's strong financial position as Montgomery prepares for major capital investment.

MONTGOMERY, Ala. - S&P Global Ratings has assigned the City of Montgomery an AA credit rating with a Stable Outlook on its proposed $375 million Series 2026B General Obligation Warrants, providing fresh independent validation of the City's financial strength as Montgomery prepares for one of its largest capital investments in decades.

The August rating action comes as the City prepares to enter the bond market and adds to Montgomery's already strong credit profile. Fitch Ratings maintains an AA rating with a Stable Outlook on the City's general obligation credit, while Moody's Ratings maintains an Aa1 rating.

S&P also affirmed its AA rating on Montgomery's outstanding general obligation warrants, reflecting the agency's continued assessment of the City as a strong and stable borrower.

"This independent assessment reflects the strong financial foundation we have worked for years to build," Mayor Steven L. Reed said. "Montgomery is entering this next chapter from a position of strength. Responsible budgeting and long-term planning have put us in a position to make generational investments in our neighborhoods, infrastructure and quality of life while continuing to meet our obligations and protect the services our residents depend on."

Montgomery's credit ratings are supported by years of disciplined financial management, healthy reserves and responsible long-term planning.

Fitch Ratings has cited the City's budgetary flexibility, reserve levels and financial resilience in maintaining its AA / Stable rating. S&P's latest review provides another current assessment of Montgomery's ability to meet its financial commitments while undertaking the proposed borrowing.

Moody's Aa1 rating further reinforces Montgomery's strong overall credit profile. While each agency uses its own rating scale and methodology, all three ratings place Montgomery firmly within the upper tiers of investment-grade municipal credit.

Together, the ratings provide independent assessments of Montgomery's financial strength and creditworthiness as the City prepares for its next generation of capital investment.