City of London retains top-tier Aaa credit rating

Moody’s Investors Service has maintained the City of London’s Aaa credit rating and stable outlook, the highest rating possible.

“As London grows, maintaining our Aaa credit rating for another consecutive year is a strong sign of our City’s sound financial management,” says Mayor Morgan. “This top rating helps ensure we have the flexibility to invest in our community while keeping costs manageable for residents. It’s a testament to the commitment and professionalism of our senior financial team and everyone at City Hall.”

In assigning this rating, Moody’s noted in its rationale that the City’s excellent governance and management, low reliance on debt and high levels of cash and investments provide increased bondholder security. While an upward pressure on debt levels from growth related capital projects is noted, Moody’s does not see this as a change in the City’s strong debt management policies. Moody’s credits the City’s strong debt management frameworks and multiple policies contributing to debt issuance reductions as positive factors in minimizing potential pressures from forecasted increases in debt and interest burden.

“Our 2024–2027 Multi-Year Budget gives us the tools to deliver on the City’s Strategic Plan and meet the needs of a growing community,” says Anna Lisa Barbon, Deputy City Manager, Finance Supports and City Treasurer. “By following the principles of the Strategic Financial Framework, the City is not only maintaining its Aaa credit rating but also supporting investment in the priorities that matter most to Londoners.”

Moody’s, a leading provider of credit ratings, research, and risk analysis, typically reviews the City’s credit worthiness annually, then assigns a credit rating. This includes a review of the City’s most recent audited financial statements, the most recent Multi-Year Budget and applicable annual updates, forecasts, meeting with City administration, officials, and other independent research.