Moody’s Investors Service has given Whitpain Township’s 2012 General Obligation Bond Issue a coveted Aaa rating.

The Aaa rating is Moody’s highest level and affirms that the Township is in sound financial position with an extremely strong capability to meet its debt obligations. The Township is one of only five municipalities in the Commonwealth of Pennsylvania to receive the Aaa rating.

Moody’s report said the Aaa rating “incorporates a very strong tax base with a large commercial component, very high wealth levels, and significant diversity of revenue sources.” The report also recognized the Township’s low amount of debt and conservative budgeting.

“We are very pleased with the rating from Moody’s,” Board of Supervisors Chairman Joseph Palmer said. “It is a testament to the financial management practiced by the Board and Township staff the last few years.”

The proceeds from the $4.25 million bond issue will be used to refund a 2006 bank loan, saving the Township about $350,000, and to purchase a ladder truck to replace a 1991 truck that is currently used by the Centre Square Fire Company.
 
The Aaa rating means that the Township will save an additional $50,000 in interest on the bond issue, solely based on the difference between its new Aaa rating and the lower Aa rating.