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Summary: Allentown, Pennsylvania; General Obligation

  • ID: 1784271
  • September 2010
  • Region: Pennsylvania
  • Standard & Poors
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Standard & Poor's Ratings Services revised its outlook on Allentown, Pa.'s general obligation (GO) bonds to stable from positive. Standard & Poor's also affirmed its 'BBB+' long-term rating on the city's GO bonds. The outlook revision is based on our view of recent weakness in the city's general fund, which has diminished its financial flexibility. The 'BBB+' rating reflects our view of the city's: Limited financial flexibility, particularly with respect to revenue enhancement capabilities, given its Home Rule Charter status; Sizable, and growing, unfunded pension liability; and Local economy, which is characterized by an above-average unemployment rate, adequate income indicators, and low property wealth. In our opinion, positive credit factors include: The city's current management team focus on producing and...

Companies mentioned in this report are: Allentown
Action: Affirmed
Action: Outlook: Stable

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, READ MORE >

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