Moody's Investors Service said it has upgraded to Baa1 from Baa2 the rating on the township of Aleppo, Pa.'s $8.1 million of outstanding guaranteed sewer revenue bonds.
The bonds are secured by township's general obligation unlimited tax pledge pursuant to the township's guaranty. Proceeds from the bonds were used to fund a major construction and expansion of the sewer system.
The upgrade to Baa1 rating reflects the successful completion of the sewer expansion project within the projected time frame and the resulting elimination of construction risk.
Given its guaranty of the bonds, the rating also reflects the township's underlying credit quality, including a limited tax base with above-average income levels, a healthy financial position, and above-average debt burden.