Redmond Gets a Boost

Standard & Poor’s has upgraded its rating and underlying rating for Redmond general obligation bonds to AAA from AA.

The newly gilt-edged rating was then assigned to the city’s $34.1 million of 2008 limited-tax GOs, which fund road improvements, and its $1.3 million series 2008 unlimited-tax GOs, which refunded outstanding 1994 bonds.

Seattle-Northwest Securities Corp. was the underwriter for the deal, which priced Tuesday. Piper Jaffray was financial adviser.

“The raised ratings reflect the city’s maintenance of good to strong available reserves and the recent voter approval for an increase in its property tax levy to fund an expansion of ongoing services,” credit analyst Chris Morgan said in a news release. “This is consistent with its strong institutionalized financial policies, including a minimum general fund balance threshold and financial forecasting that allows management and political leadership to consider the long-term implications of budgeting decisions.”

Redmond is “upscale” and “jobs-rich,” Standard & Poor’s reported, notable for its largest employer, Microsoft Corp., which is in the midst of a $1 billion expansion project that would give it capacity for more than 40,000 workers in 2009.

Moody’s Investors Service affirmed its Aa3 rating for Redmond’s limited-tax GOs and its Aa2 rating for the unlimited-tax GOs.

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