KBRA Affirms A+ Rating with Stable Outlook for the Borough of Bristol, PA General Obligation Notes

15 Feb 2024 | New York

KBRA affirms the long-term rating of A+ with a Stable Outlook for the Borough of Bristol, PA's General Obligation Notes.

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

Credit Positives

The availability of substantial financial resources outside of the GF which may be made available to support operations provided the action has been passed via a voter referendum required by ordinance.
The Borough council has untapped statutory authority to increase revenues through the implementation of an earned income tax of up to 1.0% of taxable income.

Credit Challenges

Lack of formal policies regarding the maintenance of GF reserve levels.
Tax base supports only modest growth in operating revenues, which prior to the pandemic led to increasing structural GF imbalance.
Weak pension funding ratios coupled with increasing required pension contributions.

For Upgrade

For Downgrade

Pattern of funding below the actuarially determined contribution.
Failure by the Borough to achieve balanced operations in the future excluding the infusion of one-time federal aid.

To access rating and relevant documents, click here.