Date: October 14, 2019
Contact: Gene Brazel, City Administrator, City of Lake Stevens
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CITY OF LAKE STEVENS RECEIVES CREDIT RATING UPGRADE
AND SELLS BONDS
Lake Stevens, WA, October 10, 2019: The City of Lake Stevens recently received a credit rating upgrade from Moody’s Investors Service (Moody’s). As the result of a credit review of the City’s upcoming sale of Limited Tax General Obligation (LTGO) bonds. Moody’s raised its long-term rating for the City of Lake Stevens to ‘Aa2,’from its previous rating of ‘Aa3’. The rating upgrade served to lower borrowing rates for the City.
On October 10, 2019, the City of Lake Stevens sold the LTGO bonds, totaling $8.245 million. Proceeds will finance the cost of acquiring and remodeling property to provide facilities for the City’s police department and other public safety functions. D.A. Davidson & Co. of Seattle is serving as bond underwriter. Interest rates on the bonds averaged 2.98%.
Moody’s stated that the Aa2 rating reflects their view of the City of Lake Stevens’s financial and economic profile, including:
- An “impressive” improvement in the city’s financial position;
- Very strong liquidity;
- Modest debt and pension liabilities compared to peers;
- Growing tax base;
- Steady increases in new construction; and
- Strong socioeconomic indicators.
Barb Stevens, Finance Director for the City, said, “We are proud of the significant progress we have made over the past few years in building healthy reserves while managing the growth of our city and its services to residents and we are gratified that Moody’s recognizes our success.”
Gene Brazel, City Administrator, said, “We believe our strong credit position not only applies to our ability to meet our long-term financial obligations, but also reflects the City’s quality as a partner in economic development initiatives.”