CITY OF LACEY RECEIVES RATING UPGRADE TO AA+ FROM STANDARD & POOR’S; REFINANCES BONDS WITH HIGHER SAVINGS
LACEY, WA, April 10, 2015: The City of Lacey recently received a Standard & Poor’s (S&P) Rating Services upgrade from ‘AA’ to ‘AA+’ for its long-term rating and the rating on its previously-issued general obligation bonds. The rating has a stable outlook. S&P also assigned the higher rating, ‘AA+,’ to the City’s LTGO and UTGO Refunding Bonds, 2015, which were priced by the City’s bond underwriter recently and are scheduled to close in May. Through the Refunding Bonds, the City locked in a savings of over $600,000 by lowering the interest cost on $8 million of its debt.
S&P stated the rating reflects their view of the City of Lacey’s:
- Very strong management, including a minimum reserve policy and financial forecasting practices;
- Strong budgeting practices;
- Very strong available reserves that are likely to remain strong for the next few years;
- Low debt, 80% of which will be repaid within 10 years; and
- Strong budgetary performance, with 2014 surpluses in the General Fund and total governmental funds, and balanced performance expected in the future.
The strong ‘AA+’ rating is only one notch lower than the strongest possible rating of ‘AAA.’ S&P defines the rating as differing from the highest-rated obligations only to a small degree, and that the City’s ability to meet its financial commitment on its bonds is very strong.
For more information, please contact Lacey Finance Director Troy Woo at email@example.com or
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- Troy Woo, Finance Director; (360) 491-3212; firstname.lastname@example.org