Press Release|Public Finance
KBRA Affirms AAA Rating with Stable Outlook for East Goshen Municipal Authority (Township of East Goshen, PA)
12 Oct 2023 | New York
KBRA affirms the long-term rating of AAA with a Stable Outlook for the East Goshen Municipal Authority's guaranteed sewer revenue notes, which are guaranteed by the Township of East Goshen'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:
Credit Positives
- Strong financial management policies and procedures, which include monthly financial reporting.
- Very high level of income per capita at 157% of the State average and strong FMV per capita at $158,349.
- Very strong unassigned fund balance at 43.3% of general fund expenditures at FYE 2022.
Credit Challenges
- General fund revenue base is somewhat dependent on earned income taxes.
Rating Sensitivities
For Upgrade
- Not applicable
For Downgrade
- Trend of operating deficits in the general fund that significantly deteriorate reserve levels.
- Increase in debt burden or significant changes to the Township’s tax base.
To access rating and relevant documents, click here.