Standard&Poor's Ratings Services has affirmed its 'AA' rating on Tacoma, Wash's electric system revenue bonds. The outlook is stable. The city has pledged its net electric system revenues to pay all principal and interest due on the bonds. 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; Track record of solid financial metrics. Although we note somewhat weaker results for fiscal 2010, estimates for 2011 indicate a return to previous trends; and, History of competitive retail rates for the region. Tacoma's rates are also well below the national average. In our opinion, credit concerns include: The moderate
