Standard&Poor's Ratings Services assigned its 'AA+' long-term rating to TES Properties (TES), Wash.'s series 2009 lease revenue bonds (sewer system), issued on behalf of the City of Tacoma. In our opinion, the rating reflects: Tacoma's obligation to make rental payments, which constitute a lien on the city's net sewer revenues; A lease structure that requires commencement of rental payments after substantial completion of the project; Rental payments that are not subject to abatement or annual appropriation; The system's fundamental strengths, which are characterized by a sound local economy with good income levels, continued strong financial performance, affordable rates, and strong management; and A $209 million five-year capital improvement plan (CIP) that remains manageable due to the city's willingness
