Summary: Tacoma, Washington; Retail Electric

S&P Global Ratings affirmed its 'AA' long-term rating on the city of Tacoma's electric system revenue bonds outstanding. The outlook is stable. The rating reflects the application of our "U.S. Municipal Retail Electric And Gas Utilities" criteria, published Sept. 27, 2018, on RatingsDirect. The 'AA' rating further reflects Tacoma's ability to maintain healthy coverage and liquidity through various hydrological and economic conditions. Concentration in hydroelectric generation, from both owned assets and power purchases, exposes the city to some surplus sales risks. However, management has prudent risk management policies and a history of successful rate management, which mitigates this ongoing exposure. Further, the maturity and diversity of the underlying service area and stable customer base contribute to the city's credit quality.

...S&P Global Ratings affirmed its '##' long-term rating on the city of Tacoma's electric system revenue bonds outstanding. The outlook is stable. The rating reflects the application of our "U.S. Municipal Retail Electric And Gas Utilities" criteria, published Sept. 27, 2018, on RatingsDirect. The '##' rating further reflects Tacoma's ability to maintain healthy coverage and liquidity through various hydrological and economic conditions. Concentration in hydroelectric generation, from both owned assets and power purchases, exposes the city to some surplus sales risks. However, management has prudent risk management policies and a history of successful rate management, which mitigates this ongoing exposure. Further, the maturity and diversity of the underlying service area and stable customer base contribute to the city's credit quality. The enterprise risk profile reflects our view of the city's: + Very strong operational and management assessment, highlighted by primarily hydroelectric assets...

Summary