Press Release|Public Finance
KBRA Affirms AA Rating with Stable Outlook for Township of Pennsbury, PA - G.O.
20 Oct 2026 | New York
KBRA affirms the long-term rating of AA with a Stable Outlook for the Township of Pennsbury, PA's Guaranteed Revenue Notes. The Notes are payable first from the Township’s open space property tax revenues and ultimately guaranteed by the full faith, credit, and taxing power of the Township.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Sizable, albeit diminished, General Fund balance and cash position provide a solid level of financial flexibility.
- Manageable fixed cost burden coupled with well-funded pension plans and the full amortization of direct debt within ten years.
- Strong underlying resource base, evidenced by high income and wealth levels, with good commuter access to major employment hubs.
Credit Challenges
- The recent sharp increases in contracted fire protection costs have contributed to recurring operating pressure and drawdowns of the General Fund balance.
- Absence of a formal reserve policy and less formal financial policies and procedures.
- General Fund revenue base is somewhat dependent on earned income taxes, which are economically sensitive.
Rating Sensitivities
For Upgrade
- Adoption of a formal reserve policy and other written financial policies and procedures.
For Downgrade
- Lack of timely action on the part of management to improve operating performance, inclusive of increased fire protection expenditures.
- Material reduction in fund balance and liquidity position due to successive drawdowns to balance the operating budget.
- While not expected, material deterioration in the municipal resource base.
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