Press Release|Public Finance
KBRA Affirms AA- Rating with Stable Outlook for Township of Tinicum, PA - G.O.
20 Nov 2025 | New York
KBRA affirms the long-term rating of AA- with a Stable Outlook for the Township of Tinicum, PA's General Obligation Notes.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Trend of favorable General Fund operating performance, supporting strong balances and liquidity.
- High per capita income and wealth levels, coupled with low poverty levels.
- Manageable debt and fixed costs burden.
Credit Challenges
- Absence of formal codified policies governing the maintenance of General Fund reserves, cash balances, and other financial management practices.
- Utilization of cash-basis financial reporting, which, in KBRA’s view, provides a less comprehensive view of operations.
- Township’s prioritization of land preservation efforts temper outlook for tax base growth.
The Stable Outlook reflects KBRA’s expectation that the tax base will remain stable, and that the Township will continue to achieve structurally balanced operations while maintaining healthy reserve balances and liquidity levels. Incorporated in the Outlook is KBRA’s expectation that open space taxes will continue to generate sufficient revenues to service 100% of future payments on the Notes.
Rating Sensitivities
For Upgrade
- Change in basis of financial reporting from cash to modified accrual.
- Adoption of formal policy for maintenance of general fund cash reserves and other financial practices.
For Downgrade
- Sustained negative operating margins resulting in a significant deterioration in cash reserves.
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