For immediate release:  October 9, 2000
For more information:  Barton Potter (360) 902-9033

Moody’s upgrades state’s COP rating to Aa2

The upgrade affects $95 million in debt, including $5.1 million in Series 2000E certificates of participation to be issued on Oct. 10.

State Treasurer Michael J. Murphy said the rating upgrade demonstrates the soundness of the equipment lease-purchase program for state agencies and the LOCAL (Local Option Capital Asset Lending) program for local governments. Both programs are administered by the Office of the State Treasurer.

“We’re delighted any time we can save our customers money,” Murphy said. “This upgrade means more state and local agencies will have a chance to finance through our programs and get their financing at a lower cost.”

The revised rating recognizes the state’s well-established track record of making appropriation-backed debt payments for equipment acquisitions, Moody’s said. The rating also recognizes the short amortization periods for equipment purchases, which match the estimated useful life of the equipment.

According to Moody’s, the new rating reflects the importance to the agencies of the projects being financed. It also reflects the state’s limited obligation to make state agency lease payments, which are subject to legislative appropriation each biennium.

Murphy said the overall credit standing of the State of Washington (General Obligation Bonds are rated Aa1) was also important in the rating upgrade for equipment COPs. Moody’s said it anticipates the state will continue to take advantage of lease-backed financings for similar purposes in the future.

The state’s high-grade rating is based on its economic resources and sound financial performance, according to Moody’s. The near-term credit outlook for the state is stable, the service said.

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