Bangkok--7 Aug--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA' long-term rating, with a stable outlook, to Spokane County, Wash.'s series 2009A wastewater system revenue bonds and series 2009B wastewater system taxable revenue bonds (Build America Bonds).
The credit strengths of this obligation include the county's established service area including suburban portions of the Spokane region; strong projected debt service coverage, reinforced by a cushion afforded by current and planned subordinate-lien obligations; adopted rate increased through 2012 tied to the financing of its capital plan; and practice of maintaining extremely strong liquidity levels, which management does not expect to change significantly for the foreseeable future.
Constraining credit quality, in our view, is a large capital plan focused on the construction of a new treatment facility.
A pledge of net sewer system revenues secures the series 2009 bonds.
Proceeds will partially finance the construction of a wastewater treatment facility.
"We expect that the county will progress on its capital plan along the lines of its agreement with its contractor, and that the county and its contractor will be able to address any unforeseen operational or regulatory challenges," said Standard & Poor's credit analyst Chris Morgan.
Encompassing the new city of Spokane Valley, a developed unincorporated area north of Spokane, and other neighborhoods in and around Spokane, the utility serves what we consider to be a moderately-growing customer base of 34,124. The county's economic base includes a mix of government, military, retail, and health care, the latter of which attracts clients from a very large area that extends into western Montana and southern British Columbia.
USPF Criteria: "Key Water And Sewer Utility Credit Ratio Ranges," Sept.15, 2008
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:
Chris Morgan, San Francisco (1) 415-371-5032
Paul Dyson, San Francisco (1) 415-371-5079
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]