NEW YORK - (Business Wire) Fitch Ratings assigns an 'AA+' rating to Port of Seattle, WA's (the port) $378.1 million limited tax general obligation bonds (LTGO), consisting of: --$87.9 million series 2000;
--$228.6 million series 2004;
--$61.6 million series 2006.
The Rating Outlook remains Stable.
The 'AA+' rating is based on the underlying strength of the Port of Seattle's tax base and the port's sound financial position, including both ongoing operating surpluses and ample tax levy capacity for repayment of the bonds.
The port district boundaries are coterminous with King County, Washington State's largest county in terms of population and economic strength. Fitch rates King County's unlimited general obligation (GO) bonds 'AAA' and its limited GO bonds 'AA+'.
The bonds are secured by ad valorem taxes levied within the port district. The total tax levy is limited by the statewide I-747 tax initiative, which applies a 1% growth limitation to the total levy, including the debt service component (although the debt service levy tax rate is unlimited). The port also retains $9.5 million in 'banked' capacity, tax capacity that may be levied at any time through a majority vote of Port commissioners. Port management makes conservative use of the tax levy and GO issuance, maintaining a policy of leveraging no more than 75% of the levy for debt service. The Port has budgeted to use only 53% of the levy for debt service in fiscal year 2009 (FY09). The port's fiscal strength is evident in its diverse revenue stream, which includes the ad valorem property tax as well as operating revenue from the Seattle-Tacoma International Airport, and the seaport division. Revenues and activity levels remain healthy for both the aviation and maritime divisions.
Direct debt levels are modest and slightly reduced since Fitch's last review, at a low 0.12% of market value. Overall debt is stable at 1.8% of market value and $3,268 per capita.
The port district's tax base is large, diverse, and far wealthier per capita and per median household than state and national averages. The county unemployment and poverty rates are also historically and currently lower than national rates. The assessed valuation is projected to fall by 11.7% for the 2010 tax year, although this large shift is due in part to a change in assessment methodology, moving from a three-year rolling average to an annual reduction. This change in approach is designed to reduce the number of contested assessments by county taxpayers.
Additional information is available at www.fitchratings.com.
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Fitch Ratings, New York
Tom Cowell, +1-212-908-9130
Andrew DeStefano, +1-212-908-0284
Media Relations:
Cindy Stoller, +1-212-908-0526
cindy.stoller@fitchratings.com
