The city's $16 million general obligation bond issue has received an “A” rating from S&P. That is the same rating S&P assigned in March 2019 when the city refinanced approximately $12.5 million in pension obligation bonds.
The S&P analysis maintains a negative outlook. Moody’s revised the city’s credit rating outlook to stable from negative last December.
The city’s financial adviser, Tom Beckett of NW Financial Group, says the city is doing a good job handling things under its control, adding that maintaining the “A” rating is a good outcome given the global financial uncertainty caused by the COVID-19 pandemic.
The S&P report credited the city for achieving budget surpluses in the last two years and restoring some cash reserves. The city also earned praise for reaching a settlement with the Lehigh County Authority over various legal disputes concerning LCA’s concession lease of the city’s water and sewer system.