Published On: Wed, Nov 20th, 2019

Moody’s upgrades Solebury Township bond rating

Moody’s Investor Service on Monday gave Solebury Township leaders something to crow about.

The credit rating agency announced that it had upgraded the rating on Solebury’s outstanding general obligation unlimited tax (GOULT) debt to Aa1 from Aa2, and assigned an Aa1 rating to the township’s $7.6 million General Obligation Bonds, Series of 2019.

An Aa1 rating typically means that an issuer has strong financial backing and cash reserves.

“The Aa1 rating represents the township’s moderately-sized tax base which is expected to remain stable and strong and is characterized by resident wealth and income levels that are well above-average,” explained Moody’s in its rating action statement. “Additionally, the rating incorporates the township’s strong financial position with ample liquidity and reserves, manageable debt burden, minimal pension liability and elevated annual fixed costs given the rapid amortization of debt.”

“The agency took note of Solebury’s focus on the preservation of open space as a key factor in maintaining the stability of the tax base in current and future years,” the township pointed out on its website. “Analysts also pointed to the administration’s actions to increase reserve funds as another strong factor in fiscal stability.”

“Proceeds from the General Obligation Bonds, Series of 2019 will be used to currently refund the township’s outstanding General Obligation Notes, Series of 2013 and Series C of 2015,” Moody’s said. “Additionally, proceeds will be used to fund various capital improvements throughout the township.”

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