National financial rating services Standard and Poor’s and Moody’s Investors Service has announced new general obligation bond ratings for the City of Tacoma.
S&P reaffirmed the City’s “AA” rating with a stable outlook, while Moody’s revised its current “Aa3” negative outlook rating to an “A1” with a stable outlook.
“These ratings are encouraging,” said Tacoma Mayor Marilyn Strickland. “They reflect that the City of Tacoma has made some tough decisions and is now on a more sustainable financial path.”
According to the report issued by S&P, the work spearheaded by a new leadership team to balance the organization’s operational budget in a financially sound manner for the first time in several years was key in its decision to reaffirm the city’s rating. Moody’s favorably noted the city’s ability to stabilize its financial operations and develop structural balance while working to improve reserve levels.
“While we’ve worked hard to cultivate better financial management practices, there’s still more work that needs to be done to ensure the long-term fiscal integrity of the City’s budget,” said City Manager T.C. Broadnax.