NEW YORK (Standard&Poor's) Feb. 21, 2007--Standard&Poor's Ratings Services revised its rating outlook on Tacoma, Wash.'s electric system revenue bonds to positive from stable based on the city utility's improved financial results. At the same time, Standard&Poor's assigned its 'A+' rating to the city's series 2007 electric system revenue refunding bonds. Tacoma's improved financial profile is characterized by rising debt service coverage and cash reserves along with conservative financial management, which is enabling Tacoma to undertake significant capital improvements without the need for debt financing. It is assumed that there will be no significant increases in capital requirements--whether due to hydroelectric project relicensing costs; new plant acquisitions; or upgrades to, or expansion of, telecommunications systems.
