For the 52nd consecutive year, Moody’s Investors Service has reaffirmed the City of Madison’s Aaa bond rating, the highest possible rating for general obligation debt. This distinction is held by only a few communities in Wisconsin and enables Madison to fund infrastructure projects at lower costs for taxpayers.
City of Madison Finance Director David Schmiedicke stated, “Madison’s elected leaders and professional staff are committed to best practices and being careful stewards of the City’s finances. Moody’s analysis has consistently cited our strong fiscal management as a decisive factor in its rating. Our financial reserves also remain healthy, which allows flexibility in our operating budget. This is critical in order for Madison to address urgent needs without jeopardizing our ability to maintain the infrastructure our residents rely on.”
The Aaa rating is intended to give investors confidence in Madison’s capacity to meet its financial obligations. On August 19, the city issued $137 million in general obligation promissory notes through a competitive sale process to support projects outlined in its 2025 capital budget. These projects include bike paths, a new library, an expanded recreation center, and street reconstruction and resurfacing. The city received eight bids from investors during this sale.
Moody’s credit analysis highlights Madison’s robust and varied economic base, which is bolstered by sectors such as technology and health care, along with state government operations and the University of Wisconsin’s main campus. The city’s sustainability plan was also recognized as a positive factor that will help it adapt to future environmental, social, and economic changes.
Other factors contributing to Madison’s bond rating include its conservative budgeting methods and long-term capital planning.
