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City of Seattle
Gregory J. Nickels, Mayor
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NEWS ADVISORY
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| SUBJECT: 'Sound financial management' preserves Seattle’s AAA credit rating
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FOR IMMEDIATE RELEASE:
9/16/2002 2:30:00 PM |
FOR MORE INFORMATION CONTACT:
Dwight Dively (206) 684-5200
Michael Van Dyck (206) 684-8347
Office of the Mayor (206) 684-4000
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"Sound financial management" preserves
Seattle’s AAA credit rating
Three rating agencies give Seattle top ratings
Seattle — Mayor Greg Nickels announced today the city of Seattle has kept its AAA credit rating on its general obligation bonds. The AAA rating, which is the highest available, was confirmed by all three rating agencies: Fitch Ratings, Standard & Poor’s and Moody’s Investor Services. Seattle will sell approximately $183 million of bonds tomorrow.
The agencies praised how the city was getting control of city finances, a goal set by Mayor Nickels when he ordered cost-cutting and other efficiency measures by city departments.
"This rating is a tribute to the city’s sound financial management in the face of the toughest economy our city has faced in 20 years. It’s good news for our citizens because it means Seattle will save on interest expenses when we issue bonds," said Mayor Nickels. "We’ll work to maintain these high ratings by adopting budgets that are sustainable and preserve basic city services."
Fitch Ratings assigned the AAA rating to Seattle’s unlimited (voted) tax general obligation improvement and refunding bonds and its second highest rating of AA+ to Seattle’s limited (nonvoted) tax general obligation improvement and refunding bonds.
"Seattle operates under numerous prudent fiscal polices, guidelines, and financial restrictions that enhance credit quality. Reductions and deferrals needed to minimize last year’s negative results and additional cuts made this year are bringing spending in line with revenue and more reflective of the city’s economic condition," said Fitch.
Seattle is one of a handful of large cities to have the prestigious AAA rating. The city earned the rating in the last few years as a result of good financial management, a broad base of revenues, and the region’s diversified economy.
In assigning its triple ‘A’ rating to Seattle’s general obligation bonds, Standard & Poor’s Ratings Service also affirmed its triple ‘A’ rating on Seattle’s previously issued general obligation bonds.
According to S & P Analyst Gabe Petek, one of the factors for Seattle’s rating "is the prudent fiscal management of Seattle’s City Council, which adheres to formally adopted policies in order to keep debt manageable."
Moody’s Investors Service assigned a Aaa rating and stable outlook to the city’s unlimited tax general obligation improvement and refunding bonds and a Aa1 rating and stable outlook to the limited tax general obligation improvement and refunding bonds.
"The city’s high ratings reflect its strong management, which is evident in sound financial operations that leave the city well-positioned to manage through the current recession and the effects of Initiative 747," said Moody’s.
The bonds Seattle sells tomorrow will cover a variety of purposes, including the completion of the Libraries for All funding plan approved by the voters in 1998. The city is also selling refunding bonds to get the benefit of low interest rates, which will result in lower property taxes.
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Mayor’s Office
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