The rating on Tanglewood Forest Municipal Utility District, Texas' GO bonds is affirmed and secured by the city of Austin, Texas. The rating on Austin's debt, which was affirmed on Sept. 8, 1997, reflects a local economy diversified by a large government, growing high-tech manufacturing and service sector presence, strong growth of the significant $20 billion tax base, and sound financial operations. Mitigating factors include growth pressures resulting in a high debt burden, significant future debt needs, and an increased property tax rate despite strong growth in the property tax base and in sales tax revenue. Austin, the state capital, is centrally located in the southeastern part of Texas. State and local government remains a strong employment sector. Growth in
