WASHINGTON - Fitch Ratings and Moody's Investors Service both affirmed their highest ratings for Seattle's unlimited tax general obligation bonds, and their second-highest ratings for its limited tax general obligation bonds.
The April 28 ratings actions come ahead of a more than $350 million competitive sale next week.
The Northwest city of about 652,000 will be selling $162.6 million of ULTGO bonds, $167.3 million of LTGOs, and another $28.2 million of taxable LTGOs, according to Moody's.
Fitch rates the ULTGOS AAA and the LTGOs AA+. Moody's Rates the ULTGOs Aaa and the LTGOs Aa1.
Fitch cited Seattle's diverse and growing revenue base, solid unrestricted reserve levels, balanced financial performance, and a "demonstrated ability" to reduce spending.
"The city serves as the economic center for the Pacific Northwest and benefits from high wealth and education levels, a relatively low unemployment rate, above-average job growth, and significant on-going development," Fitch said in a report. "The regional economy remains heavily influenced by Boeing and Microsoft but has become increasing diversified due to the growth of Amazon and other companies."
The LTGOs received a lower rating because increases on the tax pledge securing those bonds is limited by law, Fitch said. Fitch also affirmed the same ratings on $128.4 million of outstanding Seattle ULTGOs and $739 million of outstanding LTGOs.
Standard & Poor's also rates Seattle's ULTGO debt at AAA.
