Bangkok--6 May--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA+' long-term rating, with a stable outlook, to King County Fire Protection District No. 16 (Northshore), Wash.'s series 2009 unlimited-tax general obligation bonds.
A covenant to levy taxes without limitation as to rate or amount, together with other money legally available, secures the bonds.
Credit strengths of the district, in our opinion, include its taxing area in the Seattle region that shows strong income indicators; demonstrated voter approval for tax and fee overrides to support operations; pattern of sustained very strong available balances (on a cash basis of accounting) that is reinforced by a formal minimum policy; and the use of a long-term forecasting model to guide budgeting decisions.
Officials will use bond proceeds to fund the replacement of an aging fire station and refund bond anticipation notes that financed the purchase of the development site.
"Like many fire districts in the state, Northshore has enjoyed voter support for its operating revenues, including a property tax increase in 2004. We expect the pattern of very strong available cash balances to continue based in part on the district's projections of a similar pattern going forward. Moreover, we think that the established nature of the district's service area makes capacity pressures unlikely for the foreseeable future," said Standard & Poor's credit analyst Chris Morgan.
The district serves an established suburban area located just northeast of Seattle, including the cities of Kenmore and Lake Forest Park. Very strong reserves and voter support for revenue flexibility represent key credit strengths for the district.
RELATED RESEARCH
-- USPF Criteria: "GO Debt," Oct. 12, 2006
-- "Key General Obligation Ratio Credit Ranges — Analysis Vs. Reality," April 2, 2008
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Chris Morgan, San Francisco (1) 415-371-5032
Lisa Schroeer, San Francisco (1) 415-371-5006