The rating on Albuquerque, N.M.'s bonds reflects the following credit strengths: * Strong and broad taxable base producing stable revenues growth and high MADS coverage (6.25 times (x) in fiscal 1996 from gross receipts revenues alone); * Above-average legal provisions, with an additional bonds test of 2.25x maximum annual debt service. The state gross receipts tax is unusually broad-based, covering most retail transactions, as well as some wholesale and manufacturing operations and food, drug, medical, and legal services. This has resulted in not only the resilience of the revenue stream from past recessions, but also its healthy growth of 8.8% per annum on average since 1992. Indenture provisions offer bond holders above-average protection, highlighted by an additional bonds test requiring
