Standard&Poor's Ratings Services has raised its rating on Tacoma, Wash.'s electric system revenue bonds to 'AA-' from 'A+'. The outlook is stable. The upgrade reflects Tacoma's improved financial results. The rating also reflects 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 was characterized by debt service coverage (DSC) of 2.4x after city transfers and 1.8x fixed-charge coverage, manageable debt levels in 2005; and good liquidity of more than $202 million as of Dec. 31, 2007; and A history of responsive rate setting by board officials and management--Tacoma' rates are well below the national average, and are, in our
