University Place Maintains High Credit Rating With Standard & Poor's

has done what the U.S. government couldn't do: maintain its high credit rating with Standard & Poor's.

According to the city, the international credit ratings agency conducted a review of its bond rating and affirmed an "A+," rating with a "stable outlook."

According to S&P, the rating reflects the following factors:

· Established economic base, with strong wealth and income indicators;

· Strong institutionalized policies and practices; and

· Record of maintaining very strong available balances in the past five years.

The credit rating agency - which made headlines earlier this month when it downgraded the rating of the U.S. government - said it considers UP's management practices "strong" under its Financial Management Assessment (FMA) methodology.

The rating noted that University Place's financial position and cost structure is sufficiently flexible that the UP will be able to adequately respond to the current economic trough, according to the city.

University Place maintained its rating despite a chorus of criticism from some over how officials have handled its Town Center project. University Place has invested more than $50 million in the mixed-use development but hasn't been able to secure a commercial tenant to date.

Still, city officials say they are pleased with the rating, which is proof that University Place is still financially stable.

“Financial stability has been the top priority for Council," said Mayor Debbie Klosowski. "We have balanced the budget, allowing us to meet all of our obligations while maintaining a healthy strategic reserve.”

Added City Manager Steve Sugg: “Council has made difficult decisions to adjust to current market conditions. I’m pleased that S&P has independently recognized our efforts to strengthen the city’s financial position during these challenging times.”

For questions about the City’s finances, please feel free to visit the City’s website at www.CityofUP.com or contact Steve Sugg at (253) 460-2500.