Standard & Poor’s has affirmed the City of Allentown's General Obligation Bond ”A” rating for the pending refinancing of approximately $12.5 million in pension obligation bonds. S&P first issued the “A” rating last fall as part of a similarly sized city bond issuance and refinancing package.
Mayor Ray O’Connell said, “The 2019 city budget proactively addresses the concerns raised by ratings agencies last summer. That budget establishes a solid fiscal foundation for subsequent years and I think that has been recognized by S&P in its latest rating.”
“The city had been tapping reserves to balance the operating budget, and that led to a rating and outlook decline last year,” said City Finance Director Brent Hartzell. “The 2019 budget does not draw from reserves, showing the ratings agencies that the city is serious about stabilizing its financial picture.”