Bangkok--20 Jul--Standard & Poor's
Standard & Poor's Ratings Services raised its rating and underlying rating (SPUR) on Centralia, Wash.'s outstanding limited-tax general obligation (GO) bonds to 'A+' from 'A'. At the same time, Standard & Poor's assigned its 'A+' rating to the city's limited-tax GO bonds, series 2010. The outlook on all ratings is stable.
"The raised ratings are based on our view of the city's continued very strong financial position and good financial management policies and practices," said Standard & Poor's credit analyst Jen Hansen.
The city has maintained a very strong cash position since 2004. The city's general fund was not hurt by a 2007 flood as the city has received $800,000 from FEMA. In 2008, the city changed to cash accounting from a modified accrual accounting. It has had operating surpluses in three of the last four years and maintained fund balances over 21% of expenditures since 2004. For 2008, the last audited year, the city ended with a slight deficit of $228,000 after $406,000 in capital expenditures to close the year with $3.3 million, or 28.7% of expenditures. Despite a 19% reduction in sales tax revenues from 2008 to 2009, the city reduced expenditures midyear and unaudited 2009 numbers show a general fund surplus of $188,000 for a total fund balance of $3.4 million, or 35.2% of expenditures, of which $2.7 million (28%) is unreserved. For 2010, the city has further reduced staffing and expenditures to offset continued projected declines in revenues. Management expects to finish 2010 with balanced operations but is planning on spending down reserves by $150,000 to pay for a capital project.
We understand bond proceeds will be used to pay the city's portion of the cost of the Lewis County Events Center and Sports Complex.
Centralia serves a population of 15,570 residents in Lewis County. It is located approximately 80 miles southwest of Seattle and 80 miles north of Portland, Ore.
RELATED CRITERIA AND RESEARCH
USPF Criteria: GO Debt, Oct. 12, 2006
Complete ratings information is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers 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. Use the Ratings search box located in the left column.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Jennifer Hansen, San Francisco 415-371-5035
Chris Morgan, San Francisco (1) 415-371-5032
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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[email protected]
Americas Customer Service: (1) 212-438-7280
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