Press Release|Public Finance
KBRA Upgrades Township of West Goshen, PA - G.O. to AAA from AA+; Outlook is Stable
27 Jan 2025 | New York
KBRA upgrades the long-term rating for the Township of West Goshen, PA - G.O. to AAA from AA+. The Outlook is Stable.
The rating upgrade recognizes the Township’s consistently very strong financial performance, which has led to a material increase in reserves and cash position.
The long-term rating reflects the inherent strength of the Township’s full faith and credit pledge; effective management structure and adopted policies; strong underlying resource base; and substantial financial flexibility afforded by the Township’s ample reserves and cash position.
Key Credit Considerations
Credit Positives
- Strong financial management structure and policies including conservative budget practices and 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
- Not applicable.
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.
To access ratings and relevant documents, click here.