Ann Arbor maintains AAA bond rating from S&P Global Ratings

The City of Ann Arbor has maintained its AAA credit rating from S&P Global Ratings, the highest rating available, continuing the city's top-tier credit standing since earning an upgrade in 2024.

In its Nov. 5, 2026, assessment, S&P assigned a AAA rating with a stable outlook (PDF) to the city's $10 million in 2026 capital improvement bonds, which will support improvements to Ann Arbor's park system.

S&P cited the city's proactive financial management, disciplined budgeting practices, consistently strong operating performance and manageable debt burden as key factors supporting the rating. The agency also highlighted Ann Arbor's strong local economy, anchored by the University of Michigan, and its well-funded pension plan.

The stable outlook reflects S&P's expectation that Ann Arbor will maintain its healthy financial position through sound financial policies and disciplined budgeting while continuing to benefit from its growing and resilient economy.

The AAA rating signals a strong capacity to meet financial obligations and helps position the city to secure favorable borrowing terms, reducing financing costs for public investments. 

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Media Contact: 

Steve Kilar, Communications Director, skilar@a2gov.org