April 28, 2006
Ratepayers to benefit from King County's bond rating boost
Sewer utility bonds upgraded to 'AA', other bond rating confirmed
Ratepayers served by King County's regional sewer system will benefit from a newly upgraded bond rating that will help lower the cost of funding new sewer improvement projects.
Standard & Poor's and Moody's Investor Services are leading global financial firms that rate stocks and corporate and municipal bonds according to risk profiles. Analysts at Standard & Poor's upgraded the Wastewater Treatment Division's sewer revenue parity bond rating from ‘AA-' to ‘AA'. They cited three key agency attributes for the bond rating boost:
- Solid financial practices;
- Increased liquidity levels; and
- Continued success with planning and carrying out a major capital improvement plan to upgrade and expand the existing sewer system to meet future growth needs.
Moody's Investor's Service assigned an A1 rating to the agency's revenue parity bonds, unchanged from last year, based on the county's ongoing strong management practices that result in positive financial results.
"The Wastewater Treatment Division is being recognized as an extremely well-managed agency, and it's well-deserved," said King County Executive Ron Sims. "Our employees' dedication to building and operating a sewer system that protects public health and the environment also protects the financial interests of people who pay their monthly sewer bill."
In making the ratings, analysts from Standard & Poor's commented that the county prudently engages in long-term planning in implementing projects being carried out in the Regional Wastewater Services Plan, or RWSP, a 30-year comprehensive plan adopted by the King County Council to repair, upgrade and expand wastewater infrastructure.
Several projects are underway or are scheduled to start construction this year. Information about the projects is available, at http://www.metrokc.gov/exec/news/2006/0308sewers.aspx).
The county's large capital improvement program, driven in part by the new Brightwater treatment system project, will require $1.44 billion in debt issuance from 2006 to 2010. About $1.25 billion will be issued in the form of parity bonds. King County's solid credit rating will help minimize costs of the planned borrowing needed to finance critical projects to prevent sewer overflows and meet the needs of growth.
People enjoy clean water and a healthy environment because of King County's wastewater treatment program. The county's Wastewater Treatment Division protects public health and water quality by serving 17 cities, 17 local sewer utilities and more than 1.4 million residents in King, Snohomish and Pierce counties. Formerly called Metro, the regional clean-water agency now operated by King County has been preventing water pollution for more than 40 years.