A communication transmitted from Yi-An Huang, City Manager, relative to the City of Cambridge retaining its Triple A (AAA) rating from the nation's three major credit rating agencies.

Research Update: Cambridge, MA $162.8 Million Series 2026 GO Municipal-Purpose Loan Bonds Assigned 'AAA' Rating February 19, 2026 Overview • S&P Global Ratings assigned its 'AAA' rating to Cambridge, Mass.' roughly $162.8 million series 2026 general obligation (GO) municipal-purpose loan bonds. • At the same time, S&P Global Ratings affirmed its 'AAA' rating on the city's existing GO debt. • The outlook is stable. Rationale Security The city's full-faith-and-credit pledge, subject to Proposition 2 1/2 limitations, secures the GO debt. Despite commonwealth levy-limit laws, we did not make a rating distinction between Cambridge's limited-tax GO pledge and general creditworthiness because our analysis of its financial and economic conditions already includes the tax limitation imposed on its revenue- raising ability. Series 2026 bond proceeds will fund various capital projects and refund about $52 million in existing bonds. Credit highlights Cambridge is an affluent community adjacent to Boston, with many leading science and technology companies and major universities providing stability to the city. While tax base growth will be slower due to changes in the region's lab and office market, the tax base will remain a significant source of strength and revenue for the city even as commercial values decline, as the city is positioned for additional residential development. Its management team operates with established and well-embedded policies and procedures, with a focus on forward-looking planning that allows for key city priorities to be addressed while sustaining financial stability and Primary Contact Tyler Fitman Boston [phone removed] tyler.fitman @spglobal.com Secondary Contact Melissa Stoloff Boston (1) [phone removed] melissa.stoloff @spglobal.com www.spglobal.com/ratingsdirect February 19, 2026 1

flexibility; we believe the city's management has taken steps to mitigate impact from changes including in the commercial property market and possible volatility in federal funding. The rating also reflects our opinion of the following credit factors: • The city's economic profile is robust, with high incomes and a large tax base supported by corporate and institutional presences with ongoing investment, particularly in residential properties. However, there is tax base concentration with the Massachusetts Institute of Technology (MIT) being the city's leading taxpayer. • The revenue base is stable, with property taxes accounting for most general fund revenues, allowing the city to sustain very strong reserves even as additional services such as pre- kindergarten education have been introduced. The city has substantial available reserves and also has taxing flexibility that we expect will allow it to sustain budgetary balance. • Management is generally conservative, with robust forward-looking planning that identifies needs and financing for capital improvement and an ongoing conversation regarding operational goals and funding opportunities for additional positions and services as needed. The city also maintains and adheres to robust policies pertaining to investments, debt management, and reserves. The city has taken steps to mitigate cybersecurity risk. • The debt profile is stable, with continuous debt issuance to support capital priorities expected to continue, and a large other post-employment benefits (OPEB) obligation. The city plans annual issuance for various capital needs, and revises capital needs and associated debt on an annual basis. • Massachusetts municipalities have a predictable operating framework with some statutory flexibility to raise local-source revenue for operations, despite commonwealth limits on property tax levy growth. For more information on our institutional framework assessment for Massachusetts municipalities, see "Institutional Framework Assessment: Massachusetts Local Governments," Sept. 9, 2024. Environmental, social, and governance We consider Cambridge vulnerable to physical factors, including rising water levels from climate change that could directly affect taxable properties due to its location along the Charles River. The city has been proactively addressing these challenges and maintains long-term environmental resiliency plans. We have analyzed Cambridge's social and governance factors relative to its economy, management, financial measures, and debt and liability profile; we view both as neutral in our credit rating analysis. Rating above the sovereign Cambridge's GO bonds are eligible to be rated above the sovereign because we believe the city can maintain better credit characteristics than the nation in a stress scenario. The city has a predominantly locally derived revenue source, with 69% of governmental activity revenue from property taxes and with independent taxing authority and treasury management from the federal government. (For further information, see "Ratings Above The Sovereign--Corporate And Government Ratings: Methodology And Assumptions," Nov. 19, 2013.) Outlook www.spglobal.com/ratingsdirect February 19, 2026 2 Cambridge, MA $162.8 Million Series 2026 GO Municipal-Purpose Loan Bonds Assigned 'AAA' Rating

The stable outlook reflects S&P Global Ratings' expectation that Cambridge's economic profile and management environment will allow the city to manage financial performance and maintain high reserves and substantial levy capacity that offset elevated debt, pension, and OPEB liabilities. Downside scenario We could lower the rating if reserves were to decrease significantly without a plan for restoration due to pressure from debt service and retirement costs or other revenue and expenditure challenges. Credit Opinion Economy Cambridge is an integral part of the regional Boston economy and benefits from Harvard University and MIT, its two leading employers and two of the leading taxpayers, which serve as knowledge centers and origins of startups, research centers, and life-science and high- technology companies that promote economic activity. Microsoft, Google, Amazon, Apple, Facebook, Pfizer, and IBM are among companies with offices or labs in the city. While there is some concentration in the tax base, due primarily to MIT's land holdings, we believe the overall size of the tax base and the stability of these institutions are mitigating factors to the risk associated with concentration. The tax base is made up of about 56% residential and 40% commercial and industrial properties. We note that in the current fiscal year, the assessed value of commercial properties in the city declined by about $4 billion, attributed to changes in the region's lab and office markets as well as changes in funding, policies, and activity in the life science and research sectors. At the same time, the city's new lab development has slowed as vacancy has increased; however absorption rates are projected to improve in the coming years as leasing has continued. Management has adjusted projections for new growth and associated revenue to account for the evolving commercial property market and expected decline in assessed value. Cambridge maintains tax levy flexibility due to a significant amount of excess levy capacity and the ability to pursue further shifts in the dual commercial residential tax burden within statutory thresholds. Residential development has remained steady and will likely see more growth than commercial properties in the near term, supported by state and local efforts to grow the housing supply. The city has completed a rezoning effort in the Alewife and Massachusetts Avenue areas to allow for mixed-use development and is pursuing a citywide rezoning effort to allow for denser residential development. We expect development will likely continue, leading to continued tax base growth, albeit slower than in the last several years. Financial performance, reserves, and liquidity Cambridge's revenue and expenditure profile is predictable, with local property taxes accounting for about 69% of fiscal 2025 operating revenue. Departmental revenue was about 8% and intergovernmental aid was 9%, with investment income and hotel and meals taxes exhibiting strength as well. The fiscal 2025 budget totaled $956 million, an 8.1% increase over fiscal 2024, with most of the increase in the budget attributable to an increase in compensation, benefits, and retirement liability costs. One of the city's major initiatives is expanded early childhood education, and management has invested in administration and capital needs for the program. www.spglobal.com/ratingsdirect February 19, 2026 3 Cambridge, MA $162.8 Million Series 2026 GO Municipal-Purpose Loan Bonds Assigned 'AAA' Rating

The city had created a $10 million stabilization fund to phase in budgetary support for this program, and about $8.5 million of this reserve was used in fiscal 2025 as this program is phased into the budget. While the city has historically appropriated free cash as part of the budget, 2025 was the first of several years that the city did not regenerate this appropriation, reflected in the deficit result and decline in available fund balance. This result is attributed to an increase in expenditures from new teacher contracts, the introduction of the pre-kindergarten program, and non-police emergency response programs. Cambridge has continued to use reserves to support capital initiatives while controlling tax rate growth, and in fiscal 2025, the transfer into the capital fund from the general fund was about $25.6 million. The city's adopted 2026 budget totals $992 million, a 3.8% increase over the prior year, which is a lower increase than the city has typically seen over the last decade. The budget includes some use of the city's excess levy capacity as well as $25 million in budgeted use of free cash, about $5 million less than the prior year. The city is developing the fiscal 2027 budget, aiming to sustain all services while incorporating slower revenue growth. The budget will reflect the city's efforts to slow budget growth as new growth from development slows. As management considers future budgets, there is a focus on sustainable budget growth as revenues increase at a slower pace than in the last five years, and we expect fewer new positions and services to be introduced. We expect available fund balance will likely remain more than 30% of expenditures, including the budget stabilization fund and other funds we consider available which the city accounts for in committed general fund reserves. The overall reserve profile and $173 million in unused levy capacity (about 17% of fiscal 2026 budgeted operating expenditures) provides budgetary flexibility and stability. Over the long term, its unfunded retirement liability carrying charges may increase, but we expect management will continue to incorporate these into the annual levy. Management The city's budget planning is comprehensive and considers multiple scenarios and uses generally conservative assumptions. Ongoing monitoring of spending ensures adherence to the adopted budget. Management makes quarterly budget-to-actual and investment management reports to finance and investment committees, respectively, and uses historical trend analysis to develop departmental expenditure and revenue assumptions. As part of the annual budget process, the city develops five-year financial and capital investment plans, outlining immediate fiscal challenges and prioritizing capital needs. These plans are thoroughly integrated into the city's management culture and allow Cambridge to adapt to macroeconomic conditions and meet internal objectives. The city invests in the state-run Massachusetts Municipal Depository Trust and bank deposits and has an investment policy that outlines objectives, standards of care, permitted investments, and reporting requirements. Its formal debt management policy includes informal targets for debt service-to-budget limits and net-present-value-savings thresholds for refunding transactions. City policy calls for maintaining an unassigned fund balance of at least 15% of the ensuing fiscal year's operating revenue as well as a total general fund balance of at least 25% of the following fiscal year's operating revenue. These policies have been adhered to over the long term and have supported fiscal stability. Debt and liabilities Cambridge has about $809 million of total direct debt outstanding, leading to elevated total liabilities relative to peers, though we note that the city has a relatively low amount of debt www.spglobal.com/ratingsdirect February 19, 2026 4 Cambridge, MA $162.8 Million Series 2026 GO Municipal-Purpose Loan Bonds Assigned 'AAA' Rating

outstanding when compared to total governmental funds revenue. The city's capital plan calls for issuance of additional debt each year. The city's debt profile is reinforced by a robust debt management policy that calls for 70% of debt to be amortized in 10 years, which it currently exceeds, with 82% of debt to be retired in that time. The city is looking for opportunities to limit debt issuance over the next several years to constrain cost growth and maintain compliance with debt policies and has already eliminated about $50 million in projected tax-supported issuance. We do not believe our view of the city's debt profile will likely change significantly. Cambridge's large pension and OPEB obligation is a credit weakness, in our opinion. We believe some assumptions used to build the required pension contribution are permissive, which could lead to fluctuating costs. In addition, the adopted funding schedule relies on significant cost escalation to meet a rapid amortization goal. Cambridge contributes $2 million annually above the OPEB pay-as-you-go cost, and its plan to address these costs relies on full pension plan funding. In the interim, we expect costs will likely continue to increase. As of June 30, 2025, the city participated in: • Cambridge Retirement System, which is 91.9% funded, with a $128 million proportionate share of the net pension liability; and • Cambridge's single-employer, defined-benefit OPEB plan, which is 5% funded, with a $728 million net OPEB liability; the OPEB trust has $44 million in assets. The pension system's discount is 7.1%, above the 6% rate we view as likely to mitigate contribution volatility. The city recently updated the system's funding schedule, which now calls for achievement of full funding by June 2029; however, it will have to balance contributions to maintain full funding. We believe management plans for these costs as part of its long-term financial planning; the high funding ratio could mitigate potential cost volatility. While the OPEB liability decreased during the past year, we expect costs will likely continue to increase, and the liability will remain large. Cambridge, Massachusetts‑‑credit summary Institutional framework (IF) 2 Individual credit profile (ICP) 1.70 Economy 1.0 Financial performance 2 Reserves and liquidity 1 Management 1.00 Debt and liabilities 3.50 Cambridge, Massachusetts‑‑key credit metrics Most recent 2025 2024 2023 Economy Real GCP per capita % of U.S. ‑‑ ‑‑ ‑‑ 179 County PCPI % of U.S. ‑‑ ‑‑ ‑‑ 154 Market value ($000s) ‑‑ 76,240,600 75,883,595 71,139,913 Market value per capita ($) ‑‑ 640,667 637,667 597,117 Top 10 taxpayers % of taxable value ‑‑ 32.4 31.7 29.8 County unemployment rate (%) ‑‑ 3.9 3.6 3.0 www.spglobal.com/ratingsdirect February 19, 2026 5 Cambridge, MA $162.8 Million Series 2026 GO Municipal-Purpose Loan Bonds Assigned 'AAA' Rating

Cambridge, Massachusetts‑‑key credit metrics Most recent 2025 2024 2023 Local median household EBI % of U.S. ‑‑ ‑‑ 144 152 Local per capita EBI % of U.S. ‑‑ ‑‑ 169 174 Local population ‑‑ ‑‑ 119,002 119,139 Financial performance Operating fund revenues ($000s) ‑‑ 917,901 915,114 820,151 Operating fund expenditures ($000s) ‑‑ 905,653 831,894 778,030 Net transfers and other adjustments ($000s) ‑‑ (32,936) (21,421) (37,735) Operating result ($000s) ‑‑ (20,688) 61,799 4,386 Operating result % of revenues ‑‑ (2.3) 6.8 0.5 Operating result three‑year average % ‑‑ 1.7 1.4 (1.7) Reserves and liquidity Available reserves % of operating revenues ‑‑ 31.4 36.4 33.3 Available reserves ($000s) ‑‑ 288,014 332,854 273,092 Debt and liabilities Debt service cost % of revenues ‑‑ 9.5 8.2 9.3 Net direct debt per capita ($) 6,799 5,869 5,229 4,442 Net direct debt ($000s) 809,090 698,460 622,308 529,266 Direct debt 10‑year amortization (%) 82 81 81 83 Pension and OPEB cost % of revenues ‑‑ 7.0 7.0 8.0 NPLs per capita ($) ‑‑ 1,078 1,581 1,867 Combined NPLs ($000s) ‑‑ 128,331 188,107 222,398 Financial data may reflect analytical adjustments and are sourced from issuer audit reports or other annual disclosures. Economic data is generally sourced from S&P Global Market Intelligence, the Bureau of Labor Statistics, Claritas, and issuer audits and other disclosures. Local population is sourced from Claritas. Claritas estimates are point in time and not meant to show year‑over‑year trends. GCP‑‑Gross county product. PCPI‑‑Per capita personal income. EBI‑‑Effective buying income. OPEB‑‑Other postemployment benefits. NPLs‑‑Net pension liabilities. Ratings List New Issue Ratings US$162.81 mil mun purp loan of 2026 bnds due 02/15/2036 Long Term Rating AAA/Stable Ratings Affirmed Local Government Cambridge, MA Limited Tax General Operating Pledge AAA/Stable The ratings appearing below the new issues represent an aggregation of debt issues (ASID) associated with related maturities. The maturities similarly reflect our opinion about the creditworthiness of the U.S. Public Finance obligor's legal pledge for payment of the financial obligation. Nevertheless, these maturities may have www.spglobal.com/ratingsdirect February 19, 2026 6 Cambridge, MA $162.8 Million Series 2026 GO Municipal-Purpose Loan Bonds Assigned 'AAA' Rating

different credit ratings than the rating presented next to the ASID depending on whether or not additional legal pledge(s) support the specific maturity's payment obligation, such as credit enhancement, as a result of defeasance, or other factors. Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at https://disclosure.spglobal.com/ratings/en/regulatory/ratings-criteria for further information. A description of each of S&P Global Ratings' rating categories is contained in "S&P Global Ratings Definitions" at https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/sourceId/504352. Complete ratings information is available to RatingsDirect subscribers at www.capitaliq.com. All ratings referenced herein can be found on S&P Global Ratings' public website at www.spglobal.com/ratings. www.spglobal.com/ratingsdirect February 19, 2026 7 Cambridge, MA $162.8 Million Series 2026 GO Municipal-Purpose Loan Bonds Assigned 'AAA' Rating

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