(Editor's note: This article was originally published May 8, 1998. It is being republished now for RatingsDirect.) The rating on Albuquerque, NM's bonds reflects: * Exceptionally strong and resilient sales tax base, * Expanding economy, * Strong debt service coverage, * Sound financial management, and * Strong additional bonds test. The rating recognizes the potential volatility of gross receipts revenue, particularly during an economic downturn. The series 1992 bonds are secured by a second lien on one-half of a 1% municipal gross receipts tax levied by the city. The series 1973 and 1987C bonds are secured by a first lien on 1% of the city's 1.225% share of the state gross receipts tax. Albuquerque is the state's largest city and
