PORT ANGELES — The city’s general obligation bond rating may have reached an all-time high after receiving a two-fold increase Monday.
Moody’s Investors Service gave the city a Aa3 rating, up from A2, on its general obligation bond after lowering its rating standards to make them more in line with those of other agencies that rate municipal bonds.
City Finance Director Yvonne Ziomkowski said Tuesday that the higher rating still will allow the city, which is rated by Moody’s, to qualify for lower interest rates.
Ziomkowksi, who has worked for the city for more than 20 years, said that the new rating is the third highest the city can receive and the highest that she could recall Port Angeles ever having been rated.
The rating reflects investors’ confidence in the city’s ability to repay its bonds.
Ziomkowksi said that, even without the change in Moody’s standards, she had expected the city’s bond rating to increase.
“They didn’t have to upgrade us if they thought we didn’t qualify,” she added.
“Them recalculating us to the higher rate actually shows that they agree that with our justification that we are financially sustainable and we are not going to default on our bonds.”
The city’s water and sewer debt, and electric revenue debt received two step increases from A3 to A1.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
