Port of Seattle bonds upgraded to AAA

Standard and Poor's (S&P) has upgraded its rating of the Port of Seattle's general obligation bonds to the highest rating the agency grants. In a press release, S&P cited the Port's "stellar operations and financial management," as a reason for the upgrade from 'AA+' to 'AAA.'

The rating is the result of a review of the Port's finances in advance of the issuance of $64 million of general obligation bonds that will refinance previously issued bonds.

Under guidelines approved by the Port Commission on Tuesday, Nov. 8, the new bonds will be issued only if the interest rate is 5.5 percent or less and the savings realized is 5 percent or more. Based on current market conditions, the Port expects to save nearly $6 million as a result of the refinancing.

"This is very good news for the Port of Seattle. It is a validation of the Port's history of careful and strategic planning, management and investments," said Port Commission President Bob Edwards. "High bond ratings help reduce financing costs for capital investments by lowering the interest rates at which the bonds are offered. This strong endorsement from the rating agencies will pay continued benefits as we carry out the Port's mission of bringing jobs and economic benefits to our community."

The Port's general obligation bonds maintained Aa1 and AA+ ratings respectively from Moody's Investors Service and Fitch Ratings.

Moody's said in a press release its rating was based on a long track record of well-managed finances, business growth at Seattle-Tacoma International Airport, record cargo volumes at the Seaport, and a strong, diversified regional economy that is vibrant and growing. The release also said the Port has used its taxing authority judiciously and has a low debt burden.

Fitch based its rating on "exemplary management practices and the Port's sound financial position." The Port's fiscal strength is evident in its diverse revenue stream which includes income from the airport, seaport and taxes, according to the rating agency.

"These ratings are a result of the Port's ongoing commitment to running a strategic, focused organization and the commission's willingness to make difficult decisions when necessary," Edwards said.