City of Edmonds earns AAA credit rating

Standard & Poor’s Global Ratings has assigned a AAA long-term rating to the City of Edmonds.

In assigning its triple-A rating for series 2021 limited tax general obligation bonds, the international credit-ratings firm said the outlook is “stable” for Edmonds’ financial picture.

“Receiving the AAA rating shows our ongoing efforts of prudent budgeting by our finance department and the practices we follow to continue to enjoy financial stability and strength in our city,” said Mayor Mike Nelson. “I appreciate the hard work of our finance department under the direction of Dave Turley to be granted this rare credit rating for cities.”

The AAA bond rating represents the highest level of credit worthiness a municipality can achieve and allows the city to borrow money at the lowest commercial interest rates possible. Edmonds is one of only 11 cities in Washington state to achieve this top credit rating.

The report cites the following factors in reaching its rating decision:

  • Strong management, with realistic and well-grounded revenue and expenditure assumptions for budget building.
  • Very strong debt and contingent liability profile supported by a low debt burden and manageable fixed costs.
  • Maintenance of its very strong reserve and liquidity position despite recent planned drawdowns.
  • Very strong economy, highlighted by the city’s optimal location near major transportation and shipping corridors in the broad and diverse Seattle-Tacoma-Bellevue MSA.

“Achieving this credit rating positions Edmonds in a favorable stance as we are working on large projects like revitalizing Highway 99 and Civic Park,” Turley said.

The competitive bond sale will be held Nov. 10, with the bond closing and receipt of funds scheduled for Nov. 23.

The full S&P report may be viewed on the city’s website.

  1. Please correct me if I am wrong. Did Edmonds previously not achieve the AAA credit rating status for several years under previous director Scott James?

    1. The city achieved the rating for the first time ever in 2019. And that was when Scott James was Finance Director.

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