KBRA Affirms AA Rating with Stable Outlook for Upper Southampton Municipal Authority (Township of Upper Southampton, PA)
13 Oct 2023 | New York
KBRA affirms the long-term rating of AA with a Stable Outlook for the Upper Southampton Municipal Authority's guaranteed sewer revenue notes, which are guaranteed by the Township of Upper Southampton’s full faith, credit, and unlimited tax pledge. The rating is based solely on the Township’s general obligation credit.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
- Strong unassigned fund balance and liquidity position provide favorable financial flexibility.
- Manageable fixed cost burden.
- Favorable resource base evidenced by per capita income at 121% of the State level and full market value per capita at $125,372.
- General fund revenue base is somewhat dependent on earned income taxes.
- Adoption of formal reserve policies and other financial practices.
- Significant reduction in direct and overlapping debt burden.
- Significant deterioration in the municipal resource base.
- Persistent trend of operating deficits and erosion to unassigned fund balance and liquidity position.
To access rating and relevant documents, click here.