City of Menlo Park receives highest possible bond rating

Published on March 17, 2025

Fitch Ratings has affirmed the City of Menlo Park's Issuer Default Rating (IDR) and general obligation (GO) bonds at 'AAA' with a stable outlook. This reflects the City's strong financial resilience and General Fund reserves. Menlo Park benefits from its location in Silicon Valley, with a tech-driven economy and high market value per capita. The City's voter-approved revenue initiatives and robust financial management contribute to its top-tier rating.

Fitch Ratings evaluates the creditworthiness of local governments, assessing their ability to meet financial obligations. It assigns Issuer Default Ratings (IDRs) based on factors like financial resilience, economic strength, budget flexibility and debt levels. Fitch also considers local economic conditions, population trends, and revenue-generating capacity when assigning ratings. Higher ratings reflect lower default risk and can help governments secure financing at better terms.

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