Bangkok--12 Jan--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA+' long-term rating to the state of Washington's $343.5 million series 2011B various-purpose general obligation (GO) bonds and $90.4 million series 2011T-2 (taxable) GO bonds. In addition, we affirmed our 'AA+' long-term rating and underlying rating (SPUR) on the state's outstanding GO debt. The outlook is stable.
"The ratings reflect our view that the state's financial management is strong, as demonstrated by its continued willingness to make timely and proactive budget amendments as it deems necessary to maintain budgetary balance," said Standard & Poor's credit analyst Gabriel Petek.
More specifically, the ratings reflect our view of the state's:
- Relatively well-educated workforce and good income indicators;
- Sales tax-based revenue structure that exhibits sensitivity to economic cycles, but to a lesser degree than those of states that rely primarily on personal and corporate income taxes;
- Historically good year-end reserve balances, including a constitutional budget stabilization account, the funding of which is prescribed by law;
- Strong financial policies and practices; and,
- Moderately high per capita debt burden and well-funded pension plans in aggregate, although it has two underfunded plans.
- The state's full faith, credit, and taxing powers secure both new series of bonds. The state will have a total of $16.8 billion GO bonds outstanding after the current offering. Of this, $6.02 billion of the state's GO debt is first payable from state excise taxes on motor vehicle and special fuels.
RELATED CRITERIA AND RESEARCH
USPF Criteria: State Ratings Methodology, Jan. 3, 2011
Complete ratings information is available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Gabriel Petek, CFA, San Francisco (1) 415-371-5042
Chris Morgan, San Francisco (1) 415-371-5032