Standard & Poor’s upgraded the city of Kent’s general obligation bond rating from AA minus to AA with a stable outlook.
In its April 6 report, Standard & Poor’s stated the increase reflected their view of the city’s improved budgetary flexibility consistent with adoption of a business and occupation (B&O) tax and an improved debt profile, according to a city media release.
Mayor Suzette Cooke thanked staff and councilmembers for their dedication to careful budgeting, adoption of new revenues and commitment to reducing debt.
“It is because of some very tough decisions and our ongoing commitment, Standard & Poor’s has elevated our credit rating,” Cooke said.
Standard & Poor’s noted some factors in the improved rating included Kent’s strong economy, budgetary flexibility and liquidity of finances. Highlights include:
• A multi-year track record of conservative revenue and expenditure assumptions and formal debt management policy
• A growing economy and adoption of a B&O tax
• A strong debt and contingent liability profile with no debt plans or alternative financing obligations
“The efforts we’ve taken as a city are paying off, and we’ve done it while working through the recession and maintaining vital services,” said Cooke. “Our goal continues to be efficient and effective delivery of city services as we move Kent forward.”
City finance director Aaron BeMiller said the improved credit demonstrates Kent’s commitment to strict financial policies.
“This rating adjustment is a strong validation that the city’s current budgetary and financial practices are having a positive effect on our bottom line and strengthening our fiscal position. Congratulations to the mayor and Council who have made paying down our internal debt and replenishing operating fund balances a priority. While there is still more work to do on both of those fronts, we are beginning to see the positive results from those policy decisions.”
Standard & Poor’s, along with Moody’s Investor Services, issues annual reviews of the city’s financial status focusing on bond rating and credit worthiness. Moody’s is expected to issue a report about Kent later this month.
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