Bangkok--26 Nov--Standard & Poor's
Standard & Poor's Ratings Services has raised its rating on Tacoma, Wash.'s electric system revenue bonds to 'AA-' from 'A+'. The outlook is stable.
"The upgrade reflects Tacoma's improved financial results," said Standard & Poor's credit analyst Peter Murphy.
Tacoma's commitment to maintaining its historically strong financial profile is a key credit strength. Board officials and management demonstrated their support of the utility's credit quality through the establishment of sound cash and capitalization ratio targets.
Tacoma Power's 180-square-mile service area includes the 43-square-mile area within Tacoma's city limits. Tacoma also serves McChord Air Force Base; Fort Lewis Military Reservation; Ruston, Wash.; and Fircrest, Wash. Retail sales totaled 4.38 million megawatt-hours (MWh) in 2007 and off-system sales totaled 1.98 million MWh. The city's high 52% load factor reflects its substantial industrial base.
The stable outlook reflects Tacoma's conservative financial management, as indicated by management's stated intention to establish rates that maintain or improve both its cash position and equity capitalization.
Complete ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, 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; select your preferred country or region, then Ratings in the left navigation bar, followed by Credit Ratings Search.
Media Contact:
Edward Sweeney, New York, (1) 212-438-6634
[email protected]
Analyst Contacts:
Peter V Murphy, New York (1) 212-438-2065
Ian Carroll, San Francisco (1) 415-371-5060