Allentown, PA - (December 5, 2024) —The Allentown School District (ASD) is proud to announce that S&P Global Ratings raised its underlying rating two notches from BB+ to 'BBB'. This significant achievement reflects the district’s strong fiscal management, strategic investments, and commitment to long-term financial health, which directly benefit students, families, and the Allentown community.
An improved bond rating enhances the District’s ability to secure financing at lower interest rates, resulting in significant cost savings for taxpayers. It also enables the District to continue making critical investments in educational programs, facilities, and initiatives aligned with its Lighting the Way: A Blueprint for Innovation and Excellence 2030 Strategic Plan.
“This rating upgrade and positive outlook on our finances is a testament to the hard work and strategic actions taken by our School Board of Directors, Finance Team, and Leadership Team,” said Superintendent Dr. Carol D. Birks. “It reflects our commitment to responsible fiscal stewardship and ensures we can direct more resources into what matters most, our students, staff and classrooms.”
By securing more favorable borrowing terms, the District can maximize taxpayer dollars and channel those savings into initiatives that enhance student outcomes and strengthen the community.
What This Means for Allentown:
- Lower Borrowing Costs: The District will save an estimated $300,000 in issuance costs on new bonds.
- Improved Financial Stability: A stronger bond rating signals a sound financial position, increasing trust and confidence among stakeholders.
- Strategic Investments: The savings from reduced borrowing costs will be reinvested in programs, facilities, and technology that directly impact students’ education and success.
Additional Information from S&P can be found here.
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