KBRA Affirms AA- Rating with Stable Outlook on Township of Tinicum, PA - G.O.

11 Dec 2024 | New York

KBRA affirms the long-term rating of AA- with a Stable Outlook for the Township of Tinicum, PA's General Obligation Notes.

The rating was affirmed because of the following key credit considerations:

Credit Positives

Trend of favorable general fund operating performance, supporting growing general fund balances and total governmental funds 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.

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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