The Borough received a "AA" issuer credit rating.

At the Council meeting held on May 14, 2019 it was announced that the Borough's application for a Standard & Poor's Global Credit Rating was well received. The Borough was given a "AA" issuer credit rating. The Borough also has a stable outlook. The stable outlook reflects S&P's opinion of Allentown's very strong economy, bolstered by the Borough's access to both Philadelphia and New York City, as well as very strong budgetary flexibility. Further supporting the rating is the Borough's very strong liquidity. S&P believes management will make the necessary budget adjustments in order to align current fund expenses with revenues and maintain a structurally balanced budget.

Key points included:

  • Allentown has a very strong economy. The projected per capita effective buying income is 159% of the national level and per capita market value of $104,819 overall.
  • The Borough's Finance Department maintains adequate policies in some but not all key areas.
  • Allentown's budgetary performance is strong. The Borough had balanced operating results in the current fund of negative 0.3% of expenditures in fiscal 2017.
  • Allentown's budgetary flexibility is very strong with an available fund balance in fiscal 2017 of 38% of operating expenditures or $940,000.  
  • Allentown's liquidity is very strong with total government cast at 76.9% of current fund expenditures and 8.ox governmental service debt in 2017. 
  • Allentown's debt and contingent liability profile is weak. Debt service is 9.6% of current fund expenditures, and net direct debt is 42.2% of current fund revenue. 
  • The institutional framework for New Jersey municipalities is strong.

A full copy of the official report may be found below.