S&P Global Ratings assigned its 'AA' rating to the city of Tacoma, Wash.'s series 2017 electric system (Tacoma Power) revenue bonds, and affirmed its 'AA' rating on the electric system's parity obligations. The outlook is stable. The rating reflects what we view as the electric system's: Favorable power supply position with surplus capacity in nearly all months, even under low stream flow conditions and below-average power supply costs; Solid coverage of fixed costs and strong liquidity at the current rating level, which we project will continue over the next five years; and Manageable debt levels, although capital needs are expected to add moderate leverage. Credit concerns include the following: Tacoma Power's residential rates were 7% below-average, but industrial rates are
