Fitch Ratings has assigned a ‘AA+’ rating to the city of Princeton’s upcoming $54.6 million general obligation (GO) bonds and $24.6 million in combination tax and surplus revenue certificates of obligation (COs), both Series 2025.
The bonds are scheduled for competitive sale Aug. 6 and will fund improvements focused on parks and public safety.
Fitch also affirmed the city’s Issuer Default Rating and approximately $60.9 million in existing GO bonds and COs at ‘AA+’. The rating outlook remains stable.
According to Fitch, the ‘AA+’ rating reflects Princeton’s strong financial foundation, including ample budgetary flexibility and healthy general fund reserves. Fitch’s assessment is based on the city’s ability to maintain unrestricted general fund reserves above 7.5% of annual spending. For 2024, Princeton reported a fund balance equal to 35.2% of expenditures.
The ratings are further supported by Princeton’s population growth, with a 10-year median annual increase of 16.6%, placing the city in the top percentile among Fitch-rated municipalities, the firm said.
Designated by the Census Bureau as the fastest-growing U.S. City, by percentage, Princeton benefits from proximity to the larger DFW metroplex and strong regional economic drivers.
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