Standard & Poor’s (S&P) Global Ratings has upgraded the city’s certificates of obligation and general obligation (GO) bond ratings from “AA-“ to “AA” and has assessed the city’s financial outlook as “stable.”
In July, Fitch Ratings upgraded Princeton’s Issuer Default Rating (IDR) and General Obligation (GO) bonds to “AA+” from “AA-”.
S&P said in a Sept. 12 release the new ‘AA’ rating reflects Princeton’s enhanced financial standing, driven by the rapid expansion of its tax base, consistent operating performance and solid reserves.
The upgrade applies to both the city’s existing certificates of obligation and the issuance of new bonds, amounting to $20.4 million, intended for public projects such as library and street improvements, as well as a police training facility.
“The rating reflects the city’s very fast tax base growth and a stable operating performance, with ample reserves, aided by strong revenue growth, but offset by a high debt burden,” said S&P Global Ratings credit analyst Karolina Norris.
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