Standard&Poor's Ratings Services has affirmed its 'AA-' rating on Tacoma, Wash.'s electric system revenue bonds. The outlook is stable. The rating reflects our assessment of 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 financial profile, which is characterized by debt service coverage (DSC) of 2.60x after city transfers and 1.75x fixed-charge coverage;, manageable debt levels, and liquidity of more than $246 million as of Dec. 31, 2008; and History of competitive retail rates for the region. Tacoma' rates are also well below the national average, and are, we believe, provide good financial flexibility. We believe credit concerns include: The moderate hydrology risk
