King County, WA Series 2024 Junior-Lien Sewer Revenue Bonds Rated ?AA/A-1?

ENGLEWOOD (S&P Global Ratings) May 23, 2024--S&P Global Ratings assigned its 'AA/A-1' dual rating to King County, Wash.'s anticipated $115.6 million series 2024 junior-lien sewer revenue refunding bonds, issued for the county's wastewater treatment division (WTD). S&P Global Ratings also affirmed its 'AA+' long-term rating on the county's existing parity lien sewer revenue bonds, and its 'AA' long-term rating and underlying rating (SPUR) on the county's existing junior-lien sewer revenue bonds. The outlook, where applicable, is stable. The bonds are being issued to refund existing commercial paper associated with refunding the 2012 junior-lien bonds and the 2020A put bonds. The 2024 bonds will be variable-rate demand obligations backed by a standby bond purchase agreement (SBPA) from Bank of America N.

...planned debt over the next several years layered in, the system's financial capacity will not diminish to the point that metrics would become inconsistent with the current ratings. The outlook further reflects our assessment of the county's historical and future willingness to adjust rates to meet rising debt service requirements. We believe that any reluctance or inability by the county council to raise rates could result in erosion of financial margins and liquidity and, in turn, diminished credit quality....

Ratings Action