The 'AA+' rating on Austin, Texas' public improvement refunding bonds is based on the city's full faith and credit pledge. The rating reflects the city's: Strong and diverse economic base, which continues to experience rapid tax base and employment growth and is anchored by state government and higher education; Expanding service sector; Solid financial performance and position and a decreasing general fund reliance on transfers from the utility enterprise funds; Improved financial flexibility achieved through the increase of capital investment paid for from operations; and Moderate overall debt levels coupled with a manageable future capital improvements plan and rapid debt amortization. Offsetting credit factors include a slowdown in the high-technology manufacturing industry. Austin, the state capital, is in south central
