Press Release|Public Finance
KBRA Affirms A+ Rating with Stable Outlook for Borough of Lansdowne, PA - G.O.
6 Nov 2024 | New York
KBRA affirms the long-term rating of A+ with a Stable Outlook for the Borough of Lansdowne, PA's General Obligation Notes.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Capacity to increase property tax millage within existing statutory limits; demonstrated willingness to raise property taxes.
- History of sound General Fund balance given the Borough’s size and limited scope of operations.
Credit Challenges
- Less formal financial management policies and procedures.
- Low wealth levels coupled with property value appreciation that has trailed CPI inflation over the last decade.
The Stable Outlook reflects KBRA’s expectation that the Borough will continue to maintain structurally balanced operations and satisfactory reserve levels. The Stable Outlook also considers the availability of additional capacity under the Borough’s tax levy limit which could be tapped to support future operating needs.
Rating Sensitivities
For Upgrade
- Significant increase in the level of unrestricted cash and General Fund balance.
- Sustained growth in the property tax base resulting in significantly increased wealth levels.
For Downgrade
- Trend of structural imbalance in operations leading to deterioration in fund balance and liquidity position.
- Material deterioration in the municipal resource base.
To access ratings and relevant documents, click here.