February 21, 2024

S&P reaffirms City of Hoboken’s excellent AA+ credit rating, cites “very strong economy”

Mayor Bhalla announced today that S&P Global Ratings reaffirmed the City’s excellent AA+ credit rating, the second highest possible rating for a municipality. Additionally, S&P provided the City with a short-term credit rating of ‘SP-1+’, the highest short-term rating that the prominent credit rating agency awards. The report cited Hoboken’s “very strong economy,” “strong budgetary performance,” and “strong institutional framework” among other factors in the ratings.

“I am incredibly proud of our successful efforts in strengthening the City’s short-term and long-term fiscal health, all while continuing with major infrastructure upgrades to improve the quality of life for residents,” said Mayor Bhalla. “The recognition from S&P is further proof that my administration, in collaboration with the City Council, have gone above and beyond to protect the taxpayers over the past several years, as we continue to produce responsible budgets that maintain the well-being of our community.”

In its credit report, S&P cited Hoboken’s “strong budgetary flexibility,” “very strong liquidity,” and “very weak debt and long-term liabilities” as additional factors in scoring. The 'SP-1+' short-term rating reflects S&P Global Ratings' confidence in Hoboken's “very strong capacity to meet principal-and-interest payments” when the 2024 Bond Anticipation Notes come due.  

S&P Global Ratings also attributes Hoboken's high credit rating to the strength of its residential tax base, cautious budgeting process, and commitment to fund balance growth and restoration following the COVID-19 pandemic.  

Further, S&P Global Ratings report noted the City’s community reinvestments, investments to mitigate flooding, and water infrastructure improvements.