Moody's Investors Service said it has upgraded the township of Aleppo, Pa.'s general obligation rating to A3 from Baa1, affecting the township's Series 2011 guaranteed sewer revenue bonds.
Moody's assigns the A3 rating to the township's $8.8 million guaranteed sewer revenue bonds of 2015 (general obligation). The Series 2011 bonds will be defeased with the current issue.
The upgrade to A3 from Baa1 recognizes the ongoing ability of the township's sewer fund to pay debt service from net sewer revenues, leaving little prospect that the general fund will have to pay debt service on the guaranteed sewer revenue debt.
The rating also incorporates the township's small tax base with a significant exposure to a large assisted living property, and its healthy and stable financial position.
