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Allentown wins two‑notch credit upgrade, outlines K–8 financing plan and possible phased millage increases
Summary
The Allentown School District reported a two‑notch credit rating upgrade and a closed $15 million 25‑year bond at about a 4% fixed rate, and officials previewed plans to finance remaining K–8 construction with options to phase a roughly one‑mill debt service increase over three years.
Allentown School District officials told the finance committee they closed a financing in late 2024 for just under $15 million, locking a 25‑year fixed rate a little over 4 percent and capturing savings on bond insurance tied to a two‑notch upgrade by Standard & Poor's to a BBB rating with a positive outlook.
The district’s advisers said the rating upgrade reduced borrowing costs on that issue and contributed to about $300,000 in bond‑insurance savings on the $15 million transaction. The advisers warned, however, that a downgrade of even one notch could raise borrowing costs materially on a larger…
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