Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating (SPUR) to AA from AA-minus on Kent, Wash.'s general obligation bonds and on Kent Special Events Center Public Facilities District (PFD)'s series 2008 taxable special events center revenue bonds and special events center sales tax bonds, to which the city has provided credit enhancement under a contingent loan and support agreement.
The outlook is stable.
"The rating action reflects our view of the city's improved budgetary flexibility consistent with the adoption of a gross receipts tax in 2013 and an improved debt profile as the city amortizes existing obligations," said Standard & Poor's credit analyst Chris Morgan.
The stable outlook reflects the anticipation that the city will continue to comply with its reserve policy, which is important in the context of the business risk associated with providing operating support for the events center, even if the city eventually creates and operating reserve for the facility.
