Mt. Lebanon's outstanding debt is now $36.2 million

On August 8, 2014, Mt. Lebanon had $31.9M outstanding post-sale.

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Rating Action: 

Moody's assigns Aa2 to Mt. Lebanon, PA's $10M GO Bonds, Series of 2015

Global Credit Research - 25 Sep 2015

Aa2 applies to $36.2M outstanding GO debt

New York, September 25, 2015 --

Moody's Rating

Issue: General Obligation Bonds, Refunding Series of 2015; Rating: Aa2; Sale Amount: $10,000,000; Expected Sale Date: 9/29/2015; Rating Description: General Obligation

OPINION

Moody's Investors Service assigns a Aa2 rating to Mt. Lebanon, PA's $10 million General Obligation Bonds, Refunding Series of 2015. Concurrently, Moody's has affirmed the Aa2 rating affecting $36.2 million in outstanding General Obligation debt.

SUMMARY RATING RATIONALE

The Aa2 rating reflects the municipality's moderately-sized and affluent tax base in suburban Pittsburgh (A1 positive); stable but below average financial position; and modest debt burden.

OUTLOOK

Outlooks are not usually assigned to local government credits with this amount of debt outstanding.

WHAT COULD MAKE THE RATING GO UP

• Increases in fund balance to levels more consistent with higher rating categories
• Continued tax base growth

WHAT COULD MAKE THE RATING GO DOWN

• Additional declines in General Fund balance
• Reversal of recent favorable income tax trend
• Sizeable tax base contraction and weakening of demographic profile
• Significant increase in General Fund supported debt that could further limit financial flexibility

OBLIGOR PROFILE

Mt. Lebanon is located in western Pennsylvania, just outside of Pittsburgh, and has a population of 33,137 (2010 US Census).

LEGAL SECURITY

The bonds are secured by the municipality's general obligation, unlimited tax pledge.

USE OF PROCEEDS

Proceeds from the current issue will be used to partially refund the Series 2010A and Series 2010B bonds for an estimated net present value savings of $439,115, or 4.5% of refunded principal, with no extension of maturity.