The 'AA' rating on Albuquerque, N.M.'s joint water and sewer system revenue bonds reflects the following credit strengths: A service area economy demonstrating depth and breadth as it serves as the state's primary economic center, Strong financial performance supported by conservative debt management policies, Combined water and sewer rates that are competitive with surrounding areas, and Strong legal protections. These strengths are tempered by a sizable $550 million, 10-year capital improvement program (CIP) of which about 40% will be financed by bonds. Proceeds of the series 2001 bonds are to be used for certain improvements to the system. The bonds are secured by the net water and sewer revenues. The rate covenant and additional bonds test are 1.33 times (x)
