EFFECTIVE IMMEDIATELY		CONTACT:	Marta Gronlund,  425-556-2427
August 18, 2008

Standard & Poor's announced Friday that they upgraded the City of Redmond's credit rating from AA to AAA.  This increase represents a jump of two rating levels, giving Redmond the highest rating granted to a city.  "This (rating) is consistent with Redmond's strong institutional financial policies," said Standard and Poor's credit analyst Chris Morgan. 
 
Standard & Poor's also cited Redmond's established economic base as a major employment center, financial flexibility and low debt burden relative to market value. The improved rating leads to lower interest rates for the City's bond sales, which in turn will save the City money.
 
"S&P carefully scrutinized all aspects of the City and its economy," stated Mike Bailey, Redmond's Finance Director.  "The analysts came to the discussions with many questions, all of which the Mayor and staff were able to answer to their satisfaction.  Mayor Marchione and the City Council paved the way for this rating increase by maintaining strong fiscal discipline during uncertain economic times.  I would also credit Microsoft, which worked closely with the City to provide the S&P analysts insights into their strategic relationship with the City."
 
During the past five years, the City's general fund balance has remained strong due to a combination of rapid tax revenue growth and recent cuts to expenditure growth.  In his report, Morgan stated that the City's management practices are "strong, well-embedded and likely sustainable".  The City uses long-term planning to guide its operating budgets and capital spending, as well as monitoring financial performance quarterly.
 
"I am pleased that Standard and Poor's saw the strength and quality of our community, staff and elected officials and reflected that in their rating," noted Redmond's Mayor John Marchione.
 
There are only three other government jurisdictions in Washington State with this high a rating and they are all much larger than Redmond -- Bellevue, Seattle and King County.  Standard & Poor's is a leading provider of financial market intelligence and the world's foremost source of credit ratings, indices, investment research, risk evaluation and data.    

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