Standard & Poor’s has upgraded the City of University Place’s limited tax general obligation (LTGO) bond rating to AA+, up from its AA rating in September 2016. The AA+ rating is just one step shy of the agency’s highest possible AAA rating.
S&P attributed U.P.’s excellent financial position to:
- the City’s very strong management, including the Council’s strong financial discipline in establishing and maintaining unallocated reserves
- U.P.’s continuing annual general fund surpluses; and
- the region’s macroeconomic condition.
This increase in the City’s bond rating is a remarkable turn-around from where the City started following the Great Recession of 2008. U.P.’s new AA+ rating is now higher than that awarded to other major cities in the county.
“The raters noted that if we are able to maintain the level of our unallocated reserves, S&P could potentially increase our bond rating to AAA, which would be a remarkable turn-around from where we started following the Great Recession of 2008,” said Council Member Steve Worthington, who is also the Finance Committee chair.
“This AA+ rating demonstrates that we have a proven track record of conservatively managing the City’s finances,” said Mayor Kent Keel. Council Member Steve Worthington, who also serves as the City’s Finance Committee chair, added, “Because our bonds are attractive to investors, we will look at whether we can leverage our strong position to refinance some our outstanding debts at a potential savings to taxpayers.”
View the copy of the 2019 S&P rating on the City Website.