City of Kirkland Continues to Achieve Highest Credit Rating

Published on April 04, 2024

Media Contact: 
David Wolbrecht
Communications Program Manager
dwolbrecht@kirklandwa.gov

The City of Kirkland has once again received top bond ratings from S&P and Moody’s credit rating agencies. Recently issued reports affirmed the City’s Aaa rating from Moody’s which the City has held since 2018, and the AAA rating from S&P, which the City has held since 2008. AAA and Aaa are the highest quality and grade, indicating a high degree of creditworthiness because their issuers are easily able to meet financial commitments and have the lowest risk of default. 

“Our high bond rating not only demonstrates sound financial management, it means savings in borrowing costs and savings for our taxpayers,” said Councilmember John Tymczyszyn. “Kirkland’s strong economy, the City’s robust reserves, and our commitment to responsible stewardship of public funds makes it possible to fund important projects throughout Kirkland at a lower cost.”

Municipal bonds are a useful financing mechanism for local governments to ensure long-term financial security. Municipalities with higher bond ratings have correspondingly lower interest rates that result in greater cost-savings over time, especially when issued to finance larger projects. For the City of Kirkland, the AAA rating means that the cost of borrowing for the planned debt issuance of $42.5 million is approximately $888,000 less than it would be if the City had an AA rating.

S&P reported, “The city's reserves have grown considerably over the past decade, and it has very high reserve balances when compared with peers. In addition, we expect that cash and liquid investments will remain very strong. The rating further reflects our opinion of the city's very strong local economy and strong management, with good financial policies and practices.” The S&P report noted that the City of Kirkland’s rating is higher than that of the federal government.

Moody’s included similar positive statements in their report. “Kirkland's local economy is a credit strength that we anticipate will continue,” the report reads. “The city's strong financial position will remain sound, supported by a capable management team, growing revenue streams and solid reserves.”

More information about the City’s finances is available on the City website.