Standard&Poor's Ratings Services raised its standard long-term rating and Standard&Poor's underlying rating (SPUR) on Austin, Texas' GO debt one notch to 'AAA' from 'AA+' based on management's maintenance of strong reserves, established by policy, that would likely allow the city to maintain its elevated financial condition even in the event of fiscal stresses such as the IT sector downturn that the Austin MSA suffered through from 2000-2002. The outlook is stable. Standard&Poor's also assigned its 'AAA' standard long-term rating, and stable outlook, to Austin's series 2008 public improvement refunding bonds. The IT sector downturn, by itself, was almost directly responsible for the period of difficult budget decisions and challenged reserves that the city faced
