Lacey utilities ratings boosted

  • 2019-10-21
The rating of the Waterworks Utilities in Lacey was recently upgraded by Standard & Poor's, reflecting their view of the facility.

Standard & Poor's Global Ratings (S&P) upgraded its rating of Lacey's Waterworks Utilities from AA to AA+. The improved rating is for the revenue bonds the facility issued in 2013. The new, AA+ rating is only one step below the AAA rating, which is the highest S&P gives. The AAA rating indicates a company or facility is extremely likely to repay any debts it owes. The worst S&P rating is a D, meaning the company or facility that issued the bonds has already defaulted.

The difference between AA+ and AAA is minimal, and indicates that the outlook for the rating is stable. AAA ratings means the repayment capacity is “extremely” strong, while the AA+ rating says the repayment capacity is “very” strong. Print shops can help create informative materials to explain issues like this.

S&P explained that several factors led it to improve the Waterworks Utilities' rating. The facility has demonstrated good financial management, and good operational management. It has kept its rates affordable in relation to the moderately high levels of income of its customers, and has an increasing service area near the Lewis McChord Joint Base and the state capitol. Finally, it has shown extremely strong coverage of debt, a modest burden of debt, a strong cash position, and improved financial measurements.



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