The city of North Bend recently received a credit rating upgrade from Standard & Poor’s (S&P) Ratings Services, from AA- to AA. S&P raised the city’s long-term rating for the city’s unlimited tax and limited tax general obligation bonds.

“This is fantastic news”, said Mayor Ken Hearing. He thanked the city council for their conservative fiscal policies and city staff for their strong leadership which resulted in the improved credit rating. An organization’s credit rating is an indication of the financial health of the entity. The ‘AA’ rating could provide favorable interest rates when the city needs to issue bonds. S&P’s stable outlook indicates that they do not expect to revise the rating in the next two years because they view the cty’s economy as very strong.

S&P stated that the rating reflects the City of North Bend’s financial and economic profile, including:

• Strong management conditions with good financial policies and practices, including a formal reserve policy;

• Healthy local economy, with favorable income indicators and market value per capita;

• Strong budget flexibility offered by the City’s available cash reserves and fund balances;

• Strong liquidity to support North Bend finances, with debt service of only 8% of total governmental fund expenditures; and

• Strong access to capital markets and access to the broad and diverse Seattle economy.

For additional information please contact Assistant City Administrator/Finance Director Dawn Masko at 425-888-7630.