Following a routine update review, Standard & Poor’s (S&P) Ratings Services has upgraded the long-term credit rating on the City of Fife’s Limited Tax General Obligation bonds by two notches from A+ to AA.
S&P stated that the rating reflects their view of the City of Fife’s financial and economic profile. In evaluating the City, S&P utilized their September 2013 local government General Obligation Criteria.
Fife is currently one of only five cities in Pierce County to enjoy a rating of AA or higher by S&P.
Fife City Manager Dave Zabell said that the City is very pleased with the upgrade. “It is reflective of the great effort and commitment applied by the organization during this most recent economic downturn, from the City Council to the employees in the field, to operate a fiscally disciplined operation that can thrive within its means,” Zabell said, adding that “aside from being an indicator of the City’s responsible fiscal practices, the AA rating is expected to provide favorable interest rates in the event the City issues bonds in the future.”
S&P’s stable outlook indicates that they do not expect to revise the rating in the next two years, as they believe the City of Fife will maintain strong reserves and a strong local economy.
The AA rating means that, in S&P’s opinion, the City of Fife has a very strong capacity to meet financial commitments. City administrators believe this not only applies to both long-term debt of the City, but also reflects on its credit quality as a partner in economic development initiatives.