Standard&Poor's Ratings Services affirmed its 'AA-' underlying rating (SPUR) on the City of Austin, Texas' series 2008A and 2008B hotel occupancy tax (HOT) subordinate-lien variable-rate revenue refunding bonds and series 2012 HOT subordinate-lien revenue refunding bonds outstanding. The outlook is stable. The ratings reflect our view of: Austin's diversified regional economy, which has exhibited strong growth in the tourism and business-related hospitality industry; Fiscal 2013 revenues from the 4.5% HOT and 2% special HOT that provide 4.3x maximum annual debt service (MADS) coverage of the city's series 2008 and 2012 HOT bonds; and Legal provisions that include a closed lien on senior-lien debt and a 1.25x MADS additional bonds test for subordinate-lien bonds. In our opinion, the preceding
