Catasauqua Borough has received another bond rating upgrade from S&P Global Ratings, which raised the borough’s underlying rating from BB+ to BBB-, with a positive outlook. This marks the borough’s second consecutive upgrade, reflecting a significant improvement in its financial position and management practices.

According to S&P Global Ratings, the improved rating “reflects the borough’s stronger financial position following substantial tax and rate adjustments that have restored structural balance in the general fund and its enterprise funds.” The report notes Catasauqua’s reserves have surpassed $2 million, with improved liquidity and a positive general fund trajectory.

Three years ago, the borough faced fiscal distress, with less than $50,000 in its general fund and mounting unpaid bills. Through decisive leadership and strategic collaboration, Catasauqua has emerged from near insolvency to investment-grade standing, it was reported.

“This accomplishment represents years of hard work and dedication from our team,” borough Manager Glenn Eckhart said. “We made a promise last year that our financial recovery would continue, and this upgrade proves that we are delivering on that promise. I am proud of everyone who believed in this administration and helped move Catasauqua forward.”

Eckhart emphasized this turnaround was not possible without borough council President Howard Cunningham, who initiated the borough’s partnership with the commonwealth of Pennsylvania when local finances reached a critical point.

“Without Councilman Cunningham’s outreach to the state for assistance, Catasauqua could have faced bankruptcy and loss of local control under Act 47,” Eckhart added. “His leadership started the path that made this recovery possible.”

The borough credits the collective efforts of elected officials, staff, consultants and community partners who guided fiscal reform, stabilized operations and implemented long-term planning. S&P Global Ratings cited these management improvements and the borough’s adoption of a five-year capital plan as important factors in the upgrade.

“Moving from junk bond status to investment grade is a major milestone for a small borough,” Eckhart said. “We’re not done yet, but the direction is clear — Catasauqua is financially stronger and more resilient than it has been in decades.”

For more information, the full S&P Global Ratings report is available at spglobal.com/ratings.