Summary: East Pennsboro Area School District, Pennsylvania; General Obligation

S&P Global Ratings assigned its 'A+' rating to East Pennsboro Area School District, Pa.'s $8.8 million series 2021 general obligation (GO) bonds. At the same time, S&P Global Ratings affirmed its 'A+' rating on the district's existing GO debt. The outlook on the ratings is stable. The district's full-faith-and-credit pledge secures the bonds, subject to Act 1 limitations. Under Pennsylvania commonwealth statute, the Act 1 Index restricts a district's ability to raise the tax levy higher than a certain index, which the Pennsylvania Department of Education determines. Despite these limitations, we rate the limited-tax GO debt at the same level as our view of the district's general creditworthiness, as reflected in the unlimited-tax GO bond rating, due to a lack

...S&P Global Ratings assigned its 'A+' rating to East Pennsboro Area School District, Pa.'s $8.8 million series 2021 general obligation (GO) bonds. At the same time, S&P Global Ratings affirmed its 'A+' rating on the district's existing GO debt. The outlook on the ratings is stable. The district's full-faith-and-credit pledge secures the bonds, subject to Act 1 limitations. Under Pennsylvania commonwealth statute, the Act 1 Index restricts a district's ability to raise the tax levy higher than a certain index, which the Pennsylvania Department of Education determines. Despite these limitations, we rate the limited-tax GO debt at the same level as our view of the district's general creditworthiness, as reflected in the unlimited-tax GO bond rating, due to a lack of limitations on the fungibility of resources available for debt service. Officials plan to use series 2021 bond proceeds for the fourth and final phase of a renovation and improvement project across the district's facilities....

Summary