S&P increases rating on Tumwater bonds

Staff writerMarch 18, 2014 

Standard & Poor's, a credit rating agency, has raised its longterm rating on Tumwater's unlimited tax and limited tax general obligation bonds to AA from AA-, the city announced.

The previous rate of AA- came at a time during the economic downturn, but the current rating reflects a stable outlook for the bonds and city.

Among the reasons for the higher rating:

-Healthy local economy, with favorable income indicators and strong assessed value per capita.

-Resumed tax base growth, including a recent increase in residential construction.

-Debt service is 1.7 percent of total governmental fund expenditures.

Because of the higher rating, the city is expected to get a better deal on interest rates when it issues bonds in the future, and the rating is not expected to be revised in the next two years because of projected revenue growth.

 

Rolf Boone rboone@theolympian.com 360-754-5403

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