Standard&Poor's Ratings Services revised its rating outlook to negative from stable on Seattle, Wash.'s previously issued general obligation (GO) bonds and GO-equivalent obligations. In addition, Standard&Poor's affirmed its 'AAA' long-term rating on the city's GO bonds and GO-equivalent obligations. We also assigned our 'AAA' long-term rating, with a negative outlook, to the city's series 2011 limited-tax GO bonds. The negative outlook reflects our view that recent investment losses in the city's defined-benefit pension fund, combined with continuing budgetary pressure, have caused the city to fail for the first time in more than 20 years to achieve the contribution rate necessary to fully fund its actuarially calculated future liabilities. We understand that, although the city has increased
