July 31, 2026
— Jeff Ward, Lehigh Valley News Briefs
(Editor’s note: I missed this two weeks ago but it’s still worth a short item.)
S&P Global has upgraded the Allentown School District’s credit rating to A-, with a positive outlook.
The district’s debt sales are ranked investment grade, meaning the ASD can borrow at cheaper rates than lesser-ranked school systems. Some investors won’t buy debt ranked below investment grade.
When Dr. Carol Birks took over as superintendent, the district’s rating was BB+, below investment grade, according to a press release from the school district.
“This financial milestone strengthens our ability to invest confidently in our classrooms while being responsible stewards of taxpayer resources,” Birks said in a statement announcing the rating. The positive outlook on the debt indicates the rating may improve when the district’s credit worthiness is next evaluated.
The Allentown School district runs 25 schools, serves 16,700 students and has 2,500 employees.
S&P Global, formerly known as Standard & Poor’s, issues ratings that measure how borrowers handle credit.
Here is a link to the ASD statement and below is a cut-and-paste version:
Allentown, PA – (July 16, 2026) — The Allentown School District announced today that S&P Global Ratings has upgraded its bond credit rating to an A- with a Positive Outlook. This achievement marks an unprecedented four-notch improvement in less than four years, recognizing the District’s strengthened financial position, disciplined fiscal management, and long-term stability.
“This bond rating upgrade is a testament to the hard work of our Finance Team, our School Board Directors, and our entire staff,” said Dr. Carol D. Birks, Superintendent and Chief Executive Officer for the Allentown School District. “By prioritizing rigorous fiscal responsibility, we have put the Allentown School District on a highly sustainable path. I want to thank Senator Nick Miller and Representatives Pete Schweyer, Michael Schlossberg, and Anna Tiburcio for their steadfast advocacy and partnership on behalf of our students and schools. This financial milestone strengthens our ability to invest confidently in our classrooms while being responsible stewards of taxpayer resources.”
The ratings upgrade is a significant milestone that directly benefits Allentown taxpayers. A higher bond rating lowers the interest rates the district must pay on future bonds, reducing borrowing costs and allowing more resources to be directed straight into classrooms and student programs. Key factors contributing to the upgrade include the district’s strengthened financial reserves and its demonstrated capacity and community receptivity to align revenues to meet essential educational needs.
“This upgrade is more than a financial milestone. It’s proof that strong leadership, responsible budgeting, and a commitment to students pay off,” said Senator Miller. “An improved bond rating means lower borrowing costs, saving taxpayers money while allowing more dollars to be invested in our classrooms and in our students’ futures. Congratulations to Dr. Carol Birks, the School Board, and the entire Allentown School District team on this well-deserved recognition. I was proud to work alongside our local delegation to support the district, and I look forward to building on this momentum for the benefit of every student and taxpayer in Allentown.”
“When Dr. Birks began her tenure as Superintendent, the Allentown School District held a BB+ non-investment grade bond rating, ” said Andrene Brown-Nowell, School Board of Directors President. “Today, the District has achieved an A- rating with a Positive Outlook, an unprecedented four-notch improvement that reflects years of disciplined financial leadership, thoughtful governance, and a shared commitment to strengthening the District’s future for the students and families we serve.”
“This upgrade from S&P reflects the disciplined, strategic decisions made by the Allentown School District’s Leadership Team,” said Scott Shearer, Financial Advisor at PFM Financial Advisors. “By maintaining robust financial controls, rebuilding reserves and demonstrating a clear commitment to structural stability, the district has significantly enhanced its standing in the credit markets, yielding tangible long-term benefits for the community.”
“This credit rating upgrade from S&P recognizes the hard work Dr. Birks and the District’s Financial Team put into rebuilding the financial health of the Allentown School District. S&P’s evaluation affirms that the District’s fiscal management and oversight are working,’ said Wayne McCullough, former President of the Pennsylvania Association of School Business Officials (PASBO). This achievement creates a strong financial foundation that will benefit students and taxpayers for years to come.”
S&P Global Ratings is one of the world’s leading independent credit rating agencies, evaluating the financial strength and creditworthiness of governments, school districts, corporations, and other public and private organizations. Its ratings provide investors with an independent assessment of an organization’s ability to meet its financial obligations. A strong bond rating increases investor confidence, lowers borrowing costs for capital projects, and serves as an objective validation of the Allentown School District’s sound financial management, long-term fiscal stability, and commitment to responsible stewardship of taxpayer resources.
Lehigh Valley News Briefs 