Doylestown Borough. Photo by James Short.
The Borough of Doylestown received a strong vote of confidence from Wall Street this week, as Kroll Bond Rating Agency reaffirmed the borough’s AA long-term rating with a Stable Outlook on its general obligation debt.
The affirmation, announced Friday by KBRA, reflects what analysts described as Doylestown’s solid financial footing, healthy reserves and low overall debt burden.
An AA rating places the borough firmly in the upper tier of municipal credit quality, signaling to investors that Doylestown is considered a low-risk borrower with a proven track record of fiscal stability.
According to KBRA, the borough benefits from strong wealth and income levels, a stable employment base, and proximity to major regional job centers. Analysts also cited Doylestown’s strong available reserves relative to its operations and its solid liquidity position, factors that help the borough manage economic fluctuations without significant financial stress.
At the same time, KBRA flagged one area to watch: the borough’s general fund relies in part on earned income taxes, which can be sensitive to economic cycles.
While not a current concern, analysts noted that prolonged revenue weakness or structural imbalances could pressure the borough’s rating over time.
KBRA said a future upgrade would depend on sustained improvement in the borough’s financial position, while a downgrade could be triggered by a trend of operating deficits, a sharp decline in reserves, or adverse changes to the local tax base. For now, the Stable Outlook indicates analysts expect Doylestown to maintain its current financial performance.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.
