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Allentown, Pennsylvania; General Obligation Nov 11
Standard & Poors, Nov 2011
Abstract
Standard & Poor's Ratings Services assigned its 'BBB+' long-term rating and stable outlook to Allentown, Pa.'s series 2011A general obligation (GO) bonds and affirmed its 'BBB+' underlying rating (SPUR), with a stable outlook, on the city's existing GO debt. The rating reflects our opinion of the city's: Several years of operating deficits and, what we consider, just-adequate reserves that management built up through the issuance of deficit bonds in 2006; Thin cash position, which we expect to improve in fiscal 2011; Sizable unfunded pension liability; and Local economy, characterized by, what we view as, above-average unemployment, adequate income, and low property wealth. We believe additional revenue from an increase in the earned income tax, which management will use to offset...
Companies mentioned in this report are: Allentown
Action: New Rating
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, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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