The 'AA' rating on Colorado Springs, Colo.'s subordinate-lien improvement revenue bonds series 2003A and B reflects the city's: Strong financial management, resulting in total coverage of about 2x on a historical and projected basis; Competitive rates in each of its four utility systems, although planned capital improvements will be accompanied by significant rate increases, particularly in the water division; Diverse mixture of resources in the electric system, which accounts for about half of the utilities' combined operation; and Stable regional economic base, which absorbs much of the growth in the surrounding area. Concern over the substantial capital improvement program, largely designed to acquire resources to accommodate customer growth in the city's combined utilities, and the expected erosion of Colorado Springs
