The 'BBB-' rating on Maricopa County Industrial Development Authority, Ariz.'s bonds reflects the industry's inherent weaknesses, including exposure to the media's negative focus and swings in political climate. A nonguaranteed contract with the Arizona Department of Corrections (the "department") that does not extend for the life of the bonds and may be terminated also presents concern. The rating also reflects the state's annual appropriation risk, the long-term demand for the facility, single project and litigation risk. The bonds will be secured by loan payments made to the Industrial Development Authority of the County of Maricopa (IDA) from the cash flow generated by the financed prison facility. The sole source of funds to make such payments is derived from a contract
