Standard&Poor's Ratings Services affirmed its 'BBB+' Standard&Poor's underlying rating (SPUR), with a stable outlook, on Austin, Texas' hotel occupancy tax subordinate-lien variable-rate revenue refunding debt. The SPUR reflects: The recent increases in the pledged hotel tax, following several years of declines, resulting in adequate debt service coverage; A moderate concentration in the hotel taxpayer base; The bonds' subordinate-lien position; and An adequate 1.6x maximum annual debt service (MADS) coverage based on fiscal 2006 pledged hotel tax revenues. Factors that support the rating at the current level include: Austin's ('AAA' GO debt rating) diversified regional economy, which has exhibited strong growth in employment and income levels over the past decade; and Adequate legal provisions, including a closed
