Fitch Ratings announced an upward revision to the city of Tacoma’s Limited Tax General Obligation Bond (LTGO) rating from “A” to “A+” to mirror the City’s Unlimited Tax General Obligation (UTGO) rating of “A+”.
“This is excellent news for the City, and I am pleased that the rating agencies and bond markets are optimistic about Tacoma, and its solid financial footing,” said Mayor Marilyn Strickland.
The upward revision in the City’s LTGO rating comes from Fitch’s revised U.S. Tax Supported Rating Criteria, in which an issuing agency’s LTGO and UTGO ratings are equivalent to its newly-assigned issuer default rating (IDR).
With the new criteria, published assessments of four key rating factors will drive rating outcomes in the context of the economic base: revenue framework, expenditure framework, long-term liability burden and operating performance.
“The City is dedicated to prudent financial management and budgetary practices,” said City Manager T.C. Broadnax. “Higher ratings mean lower costs to the citizens and taxpayers the next time the City goes to the bond market.”