S&P Global Ratings lowered its long-term rating to ‘AA’ from ‘AA+‘ on the City of Lynnwood , Washington's limited tax general obligation (LTGO) bonds outstanding and Lynnwood Public Facilities District ’s obligations outstanding that have received the city’s contingent GO backing. The outlook is stable. The rating action reflects our view of the city’s trend of operating deficits, which have reduced reserves. The LTGO bonds are full faith and credit obligations of the city, including a direct pledge of ad valorem property taxes subject to a maximum levy rate and a property tax revenue growth restriction. Under an agreement between the district and the city, the city has irrevocably agreed, on a contingent basis, to make loans to the district
