Press Release|Public Finance
KBRA Affirms AA+ Rating with Stable Outlook for Township of West Goshen, PA General Obligation Notes
30 Jan 2024 | New York
KBRA affirms the long-term rating of AA+ with a Stable Outlook for the Township of West Goshen, PA's General Obligation Notes.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Strong financial management structure and policies including conservative budget practices and strong formal reserve balance policy.
- History of ample unassigned general fund balance and liquidity.
- Stable residential tax base with good commuter access to large, diverse employment centers supporting strong wealth and socioeconomic indicators.
Credit Challenges
- Revenue structure with significant reliance on earned income tax, which can be economically sensitive.
Rating Sensitivities
For Upgrade
- Trend of significant growth in the Township’s property tax base.
For Downgrade
- Trend of operating deficits leading to significant deterioration in General Fund reserves.
- Significant increase in debt burden without a tantamount increase in its reserves.
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