Sound Transit earns highest possible bond ratings
July 3, 2012
Sound Transit received the highest possible ratings from major bond credit rating agencies June 27, despite a challenging economic environment.
Officials said the ratings mean savings for taxpayers in Issaquah and other communities served by the agency. Sound Transit is preparing to save at least $12 million by taking advantage of lower interest rates to refinance about $350 million of outstanding bonds.
In a June 28 decision, Sound Transit board members unanimously approved motions to set parameters to proceed with the transactions. Issaquah City Councilman Fred Butler serves on the board.
Moody’s Investor Service continued the Aa1 rating for Sound Transit’s senior bonds and the Aa2 rating for the agency’s junior “parity bond” obligations. The action maintains Sound Transit as one of the highest-rated transit agencies in the nation.
Sound Transit also carries the highest possible rating on both bond obligations, AAA, from Standard & Poor’s.