Hampton Township, Pa., Upgraded to AA-Minus by S&P

Standard & Poor's Ratings Services said it has raised its underlying rating on Hampton Township, Pa.'s general obligation debt one notch to AA-minus from A-plus.

The outlook is stable.

"The upgrade is based on the township's access to a broad and diverse economy coupled with very strong liquidity and adequate budgetary flexibility," said Standard & Poor's credit analyst Danielle Leonardis.

The bonds are secured by the full-faith-and-credit pledge of the township.

The stable outlook reflects Hampton's strong underlying economy with access to the Pittsburg MSA. The rating is further stabilized by the township's very strong liquidity and debt profile.

Despite recent fund balance drawdowns to a level considered adequate and a weak budget performance in fiscal 2014, the township should return to positive results within the next two years.

Should financial performance weaken further, it could put stress on the rating. However, if operating performance improves, while all other factors remain stable, the agency could raise the rating.

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