Standard & Poor’s raised the underlying rating on Scranton, Pa.’s general obligation debt to BBB-minus from BB, based on its view of the city’s continued modest progress toward structurally balanced general fund operations, an improved cash position, and strengthened revenue collection procedures.
The outlook is stable.
“The stable outlook reflects the city’s improved financial performance and enhanced revenue collection procedures, which contributed to its slightly lower receivables balance,” said analyst Le T. Quach.
“We expect the city’s receivables balance to further decrease as it strengthens its collections and revenue monitoring,” she added.
The outlook also reflects the assistance of Pennsylvania with respect to the administration of the city’s recovery plan.
