Standard&Poor's Ratings Services has affirmed its 'AA' rating on Tacoma, Wash's electric system revenue bonds. Tacoma has pledged its net electric system revenues to pay all principal and interest due on the bonds. The rating reflects the utility's: Favorable power supply position with surplus capacity in nearly all months, even under low stream flow conditions and below-average power supply costs; Strong liquidity; Very low rates and strong competitive position both regionally and nationally; and Manageable and rapidly amortizing debt levels, and moderate capital needs. Credit concerns include: Although debt service coverage (DSC) is solid at roughly 2x, fixed-cost coverage, which factors in transfers and fixed costs associated with purchased power, has weakened over the past three years, to
