NEW YORK (Standard&Poor's CreditWire) June 8, 2001--Standard&Poor's today assigned its single-'A'-plus rating to Tacoma, Wash.'s $266.4 million electric system revenue and refunding bonds, series 2001A and 2001B. At the same time, Standard&Poor's affirmed its single-'A'-plus rating on Tacoma's outstanding debt. Standard&Poor's also revised the outlook on the bonds to negative from stable. The rating reflects ongoing stress on the utility's cash position due to low hydro conditions at Tacoma's hydro-electric facilities and unprecedented wholesale market prices in western power markets, which the utility is exposed to because of a need to augment its diminished hydro-electric resources. The financial stress is evidenced by the $35 million short-term borrowing, needed to cover a deficit
