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Munhall officials say S&P pulled bond rating after audit delays; council to consult solicitor
Summary
At an April 8 workshop the borough manager reported S&P removed Munhall's bond rating because the 2024 audit remained in draft after months of delay; council members expressed concern about potential future borrowing effects and asked staff to pursue final audit delivery and legal options.
At the Munhall borough workshop on April 8, borough manager Dave told council that Standard & Poor's had removed the borough's bond rating because the 2024 audit remained unpublished.
"S&P has removed our bond rating," Dave said, explaining staff had been working for months with the auditor and that the audit returned from pension-data providers late. He said the auditor expected to deliver a final version by Friday and that the borough would notify its bank and bond underwriter (Dakbond was mentioned) while the solicitor reviewed possible next steps.
Council members pressed for clarity about whether the action would raise borrowing costs. Dave said the immediate impact should be limited because existing loans have locked-in rates, but uncertain future financings could require a fresh rating if the borough seeks a new bond. Several members suggested the solicitor review the auditor contract to determine whether legal remedies or liability are available.
The exchange made clear the borough's concern is procedural rather than an allegation of deficient finances: Dave told the council there was nothing in the draft audit indicating financial problems, only a delay in finalization. Council asked staff to pursue the final audit, inform US Bank, and discuss the situation with the solicitor and the underwriter. A council member requested a closed session with the solicitor to discuss contract and liability questions.
Next steps: staff will follow up with the auditor to finalize the audit, notify the bank and underwriter, and return to council with solicitor guidance on potential contractual remedies and the timeline for restoring a bond rating.
