Allentown, Pa.'s 50-year, $220 million water and sewer lease deal is a credit positive for the city, Moody's Investors Service said Friday.

Allentown, the 119,000-population seat of Lehigh County, plans to pay $158 million toward its unfunded pension liability and redeem $30 million of general obligation debt with proceeds from the concession of its water and sewer system.

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