Why King County is in good position to recover from COVID crisis

Like other parts of the Puget Sound region, King County has struggled to keep its budget intact during the ongoing pandemic. According to a trio of the nation’s top bond agencies, though, the county is in a good position for economic recovery in the months ahead.

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That’s seen in bond ratings recently released by Standard and Poor’s, Fitch Ratings, and Moody’s Investors Service, all of which issued King County a “AAA” rating. That’s the highest possible score the county could have received, and King County is the only county in Washington to receive that rating from all three agencies.

“King County’s strong bond ratings are a testament to our financial stewardship and commitment to be the best run regional government in the nation,” Executive Dow Constantine said in a written release.

Fitch cites “a combination of spending cuts, revenue raising and use of reserves,” as some of the driving factors behind the county’s AAA rating.

The county has faced at least a $20 million budget shortfall brought on by the COVID crisis, and has had to make significant cuts across multiple departments as a result. Between those cuts and what Moody’s labels a “highly educated population and solid infrastructure,” the long-term recovery outlook for King County looks favorable post-COVID.

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Because of these agency ratings, King County is in a good position for a pair of bond sales in late October, which would raise $53 million in open space acquisitions and technology projects, as well as for Metro.

“There is no doubt that we face a faltering national economy, but as these bond agencies predict, King County will get through these tough times and continue to expand prosperity and opportunity for all residents,” Constantine said.

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