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News and Notices

City of Auburn’s GO Bond Rating Raised to “AA+” on Application of Local GO Criteria

The City of Auburn received notification that Standard & Poor's Ratings Services raised its long-term rating to 'AA+' from 'AA' on Auburn’s general obligation (GO) bonds. The outlook is stable.

"I am very pleased with the ratings upgrade,” said Finance Director Shelley Coleman. “It is a direct reflection on the mayor, council and staff’s diligent attention to fiscal matters to ensure continued financial sustainability of the City." 

It was noted by an S&P analyst that the City’s management conditions are very strong, its tax base is diverse and the local economy’s strength made for the upgraded rating. Also noted were its location in the Puget Sound area as well as a strong debt and contingent liability profile make Auburn’s practices strong, well embedded, and likely sustainable.

“I am not surprised at all by the improved rating due the outstanding leadership and decision-making of our staff,” said Mayor Nancy Backus. “A stronger credit rating will only help us as we move into our future endeavors.”

The rating will provide a higher marketability of bonds and in turn a lower interest rate as investors will be willing bid for the bonds carrying a lower interest rate and in turn create savings overall for the City in lower rates. For example, over the life of a 30 year bond a stronger rating could translate into well over $1 million in savings over the life of the bond.

Download the full S&P report (PDF)