S&P Global Ratings has assigned an AA rating to Montgomery’s proposed $375 million bond issuance as the borrowing plan remains without final approval from the Montgomery City Council.
The credit rating agency assigned the city’s proposed Series 2026B General Obligation Warrants an AA rating with a stable outlook. S&P also affirmed its AA rating on Montgomery’s existing general obligation debt.
The rating comes as Mayor Steven Reed’s administration continues pushing its “Momentum 2040” capital investment plan, which would authorize up to $375 million in borrowing for a slate of projects across the city.
“This independent assessment reflects the strong financial foundation we have worked for years to build,” Reed said Monday.
“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.”
The proposed spending plan includes approximately $200 million for an expansion of the Montgomery convention center, $45 million for a sports complex and amphitheater, $50 million for city facilities and service improvements, $40 million for neighborhood projects and $15 million for housing infrastructure. Remaining borrowing capacity would cover financing and insurance costs.
S&P said its stable outlook reflects expectations that Montgomery’s economy and sales tax revenues will continue supporting balanced operations, along with the city administration’s commitment to increasing fund balances.
The agency also said the rating could come under pressure if the city reports negative operating results due to additional capital projects or a growing debt burden.
The bond package, however, has yet to receive approval from the Montgomery City Council.
As previously reported, council members have delayed the proposal multiple times while raising questions about the size of the borrowing package and whether the city should prioritize police staffing, sanitation, roads and other basic services.
The council has not yet authorized the city to issue the proposed bonds.
Sawyer Knowles is a state and political reporter for Yellowhammer News. You may contact him at [email protected].
