Bangkok--23 Jul--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA+' rating to King County, Wash.'s $250 million sewer revenue bonds ("parity bonds," which is the senior lien), series 2009. At the same time, Standard & Poor's affirmed its 'AA+' rating and underlying rating (SPUR) on the county's outstanding parity bonds (senior lien) and its 'A-1+' short-term rating on the county's outstanding commercial paper (CP), which is secured by a lien subordinate to the county sewer system's junior-lien obligations. The outlook on all long-term ratings is stable.
"The rating is based on county council's willingness to regularly increase rates and connection charges to produce predictable financial results that frequently slightly outperform financial forecasts," said Standard & Poor's credit analyst Paul Dyson. "Moreover, the county's financial performance has been consistently strong, and its excellent cash liquidity measures allow management the flexibility to employ a long-term and comprehensive perspective."
Bond proceeds will be used to fund the county's wastewater treatment division capital improvement plan (CIP). Dominating CIP spending is the regional wastewater services plan, the county's comprehensive 30-year plan adopted by the council in 1999, which envisions meeting growth, regulatory, and environmental requirements.
The county provides wastewater treatment services to approximately 1.4 million residents under service agreements between the county and 34 municipal and three non-municipal participants in the broad and deep economic base of King and Snohomish counties. Its four treatment plants (including the newly built Carnation plant) treated an average daily flow of 162 million gallons per day in 2008.
RELATED RESEARCH
USPF Criteria: "Standard & Poor's Revises Criteria For Rating Water, Sewer, And Drainage Utility Revenue Bonds," Sept. 15, 2008
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Paul Dyson, San Francisco (1) 415-371-5079
Gabriel Petek, CFA, San Francisco (1) 415-371-5042
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]