Everett Housing Authority Receives A+ Credit Rating, Secures Successful Bond Issuance for Huntington Park
In July 2022, Everett Housing Authority (EHA) received an A+ issuer credit rating (ICR) from Standard and Poor’s (S&P) Global Ratings. This is the first time in Everett Housing Authority’s 80-year history to request and receive a credit rating. EHA also received a second party opinion from S&P Global Ratings that EHA’s Social Bond Framework is aligned with the International Capital Market Association (ICMA) 2021 Social Bond Principles.
In unison with this rating and the second party opinion, EHA was able to place Social Bonds on the market through their bond underwriter, KeyBanc Capital Markets Inc., for permanent financing of Huntington Park Apartments, a 381-unit multi-family complex located in Everett, WA. This bond issuance also received a separate A+ rating, and orders for just over $120 million in bonds were placed by investors.
“It was due to EHA’s strong operational and financial performance that we received this strong first-time rating,” said EHA Executive Directory Ashley Lommers-Johnson. “It was because of this rating that we were able to secure what we needed in bonds from investors to provide stable permanent financing for Huntington Park.”
EHA purchased Huntington Park in March 2022, marking the largest acquisition in EHA history and increasing their housing portfolio by 25%. The property primarily services Everett’s workforce, and residents benefit from the location of this property with walkable public transportation, grocery stores, restaurants, entertainment, and schools all within a one-mile radius.
“While we may still use our traditional sources of financing for some of our development and acquisition activities, this rating allows for us to efficiently take advantage of other opportunities that come our way,” said Lommers-Johnson.
S&P Global Ratings’ outlook for EHA is stable, especially due to low-income housing demand remaining strong in the markets EHA serves. In relation to EHA’s enterprise risk profile, S&P Global Ratings gave a rating of strong, very strong, or extremely strong in seven of the nine main rating factors.