Standard&Poor's Ratings Services assigned its 'AA' rating, and stable outlook, to Glendale, Ariz.'s series 2007 transportation excise tax revenue obligations. The rating reflects the city's: Underlying credit strengths ('AA' GO debt rating), including its participation in the diverse Phoenix MSA; Solid maximum annual debt service (MADS) coverage of 2.1x; and Sound legal covenants with an additional bonds test of 2.0x MADS and 1.5x debt service coverage (DSC). These strengths are mitigated, in part, by the city's: Absence of an upfront debt service reserve fund, though a 1.75x springing reserve is provided; and Plans for additional bonding against pledged revenues and below-average debt amortization. An electorate-approved 0.5% transportation excise tax passed in 2001, levied to fund transportation improvements and
