Si View Metro Park District receives high bond rating, saving taxpayers money
December 2, 2010
By Administrator
Si View Metropolitan Park District received high marks from Standard & Poor’s, a national credit rating agency, which should lower the amount of interest it will have to pay on $6.7 million in bonds the district is preparing to issue.
Voters approved the bonds in the Aug. 17 election. The bonds will pay for capital improvements and refinance existing debt.
Standard & Poor’s gave the district a bond rating of AA, one of the highest ratings possible. The major rating agencies, including Standard & Poor’s, have been heavily criticized in the past year for being too lenient in evaluating private companies, but the criticisms have not included their ratings of government agencies.
Ratings are based on an entity’s fiscal management and sustainability. The higher rating means the bond is a safer investment for potential buyers.
That translates into savings for taxpayers in the park district’s territory, because the district will have to pay lower interest rates.
Key factors in the district’s rating were its financial situation and available reserves, its financial policies, the long-term rising property values in the area, proximity to the Seattle-Bellevue metropolitan area, voter support for the bond and experienced management, according to a statement issued by the district.
The bonds will be underwritten by Martin Nelson & Co., a Washington investment-banking firm based in Seattle.
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