S&P: High Bridge Borough, PA GO Debt Rating Raised To 'AA' On Improved Finances
The rating action reflects S&P Global Ratings' opinion of the borough's improved financial performance and liquidity.
At the same time, the rating service assigned its 'AA' rating and stable outlook to the borough's $2.49 million series 2016 GO refunding bonds.
"We do not expect to change the rating over the outlook's two-year period," said S&P Global Ratings credit analyst Michael Mooney. "If the borough were to sustain economic indicators at higher levels, and if it were to improve the debt profile, with no deterioration in any other rating factors, we could raise the rating. If budgetary performance were consistently weak, leading to the deterioration of available reserves and weakened liquidity, particularly from the borough's exposure to contingent liability risk, we could lower the rating."
The borough's full-faith-and-credit unlimited-tax pledge secures the bonds.
Officials intend to use series 2016 bond proceeds to current refund the borough's series 2006 general improvement bonds and series 2006 golf course utility bonds for a combined net present value savings of slightly more than 6%; the borough will take level savings annually.