The 'AA' rating on Glendale, Ariz.'s senior excise tax revenue bonds and the 'AA-' Standard&Poor's underlying rating (SPUR) on the city's junior-lien debt reflect the city's: Underlying credit strengths ('AA' GO debt rating), including its participation in the diverse Phoenix MSA; High debt service coverage (DSC) levels; and Strong legal covenants, including a 3x additional bonds test for the senior excise tax revenue bonds and 2x for the junior-lien debt. Offsetting factors include the city's: Slow amortization of total principal outstanding, structured to match future project revenues; and Potential for slow growth or decline in state-shared revenues over the next few years. The senior excise tax revenue bonds are payable from rental payments made by Glendale under a
