Bangkok--27 Aug--Standard & Poor's
SAN FRANCISCO Aug. 26, 2009--Standard & Poor's Ratings services assigned its 'AA-' rating to Tumwater, Wash.'s series 2009 unlimited-tax general obligation (GO) refunding bonds.
"The credit strengths of this obligation, in our opinion, include the city's economic base anchored by state government; record of maintaining very strong available balances; good financial policies and practices; and low-to-moderate debt burden, with no plans for additional debt," said Standard & Poor's credit analyst Chris Morgan.
Constraining credit quality in our view, are limited revenue flexibility under state law and a cyclical downturn in the city's key revenue sources, the latter of which the city projects could contribute to a reduction in available reserves to just above the city's 8%-of-expenditures general fund balance policy in 2010. We understand that proceeds will refund the city's outstanding 1998 unlimited-tax GO and refunding bonds to achieve interest rate savings.
The stable outlook reflects our expectation that the city will continue to experience revenue pressure related to the recession but that budget adjustments will be sufficient for it to maintain available balances in line with its financial goals.
RELATED RESEARCH
USPF Criteria: "GO Debt," Oct. 12, 2006
USPF Criteria: "Key General Obligation Ratio Credit Ranges — Analysis Vs. Reality," April 2, 2008
USPF Criteria: "Financial Management Assessment," June 27, 2006
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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
Misty Newland, San Francisco (1) 415-371-5073
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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