Newtown Township, Delaware County announced that its bond rating has been upgraded by Moody’s Investor Services. Moody’s has assigned an Aaa rating for the Township’s general obligation unlimited tax (GOULT) rating. This new rating is an upgrade from its previous rating of Aa1. Moody’s has also sustained the Aa1 rating on the Township's guaranteed revenue debt. The Township has $14.2 million in direct debt outstanding and guarantees an additional $33.5 million of sewer revenue bonds.
The upgrade of Newtown Township’s GOULT rating is reflective of its financial position, since it has outperformed over the last five years, as well as the expectation that the Township will continue to generate an operating surplus in the near term. The Aaa rating also reflects the Township’s substantial reserves outside of the General Fund, along with the growing economic base of the area. This rating incorporates the Township’s manageable debt burden, which includes the self-supporting sewer authority debt that it guarantees.
The one notch distinction between the Township’s Aaa GOULT rating and its Aa1 guaranteed sewer revenue rating is based on the guaranty agreement. This agreement extends the Township’s full faith and credit pledge to annual debt service, but it does not pay for the full acceleration of the principal in the event of default. Moody’s stable outlook for Newtown Township reflects the expectation that the Township’s financial position will continue to be strong in the near to middle term, its economy will continue to grow and its debt will remain manageable.
“The upgraded rating is due to the Township’s careful stewardship of its finances,” said Stephen Nease, Township Manager. “We are grateful for the work of our Finance Department and especially our Finance Director Rich Lafiata in managing the Township’s finances and achieving the Aaa rating.”
For more information about Moody’s Investor Services Ratings, visit www.moodys.com.
About Newtown Township
Newtown Township is a suburban community located in Delaware County, Pennsylvania, approximately 12 miles west of Center City, Philadelphia and adjacent to the Main Line. The community offers the convenience of regional amenities, while maintaining the ambiance of a small-town community. The Township is home to many small businesses, as well as cutting- edge national and international corporations. To learn more, visit https://newtownTownship.org.
