Salvation Army USA Eastern Territory, New York; CP; Non-Profit Organizations

S&P Global Ratings affirmed its 'A+' issuer credit rating (ICR) on The Salvation Army USA Eastern Territory, N.Y. (TSA). At the same time, we affirmed our 'A-1' short-term rating on TSA's series 2007A and 2016A commercial paper (CP) program. The outlook is stable. The ICR does not refer to any debt instrument, and instead reflects our view of TSA's overall long-term credit quality. The ICR reflects our opinion of TSA's role as a leading human service provider that excels in meeting its mission even in times of national stress, as was the case when the COVID-19 pandemic unfolded. In our view, the TSA's ability to do so reflects its excellent brand-name recognition, long and successful fundraising history, and healthy financial

...The ICR does not refer to any debt instrument, and instead reflects our view of TSA's overall long-term credit quality. The ICR reflects our opinion of TSA's role as a leading human service provider that excels in meeting its mission even in times of national stress, as was the case when the COVID-19 pandemic unfolded. In our view, the TSA's ability to do so reflects its excellent brand-name recognition, long and successful fundraising history, and healthy financial resources inclusive of a large and conservatively managed investment portfolio. Much of the portfolio, however, is restricted as to use. Offsetting factors include dependence upon fundraising to support the rating, risks associated with investment market volatility, and dependence on investment income. In our view, TSA's financial management practices, while sufficient for its purposes, are not as strong as those of comparably rated organizations, as key administrative and financial personnel may not remain in their positions...

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