Standard & Poor's (S&P) Ratings Services affirmed its 'AAA' rating, with a stable outlook, on the City of Kirkland’s outstanding water and sewer revenue bonds. The rating cites the system's strong liquidity position and debt service coverage, a very diverse system (with the top 10 users contributing 4% of revenue), a service area with above-average wealth and income levels, and the community's primarily residential "bedroom" nature, participating in the greater Seattle, Washington economy. The announcement is the result of a periodic review of the City’s bonds.
Municipal utilities sell revenue bonds to support capital projects for utility infrastructure. Rating agencies "rate" the ability of the utilities to repay bond principal and interest. S&P’s definition of an AAA rating is the highest rating given and represents maximum safety to the investors purchasing these bonds.