Standard&Poor's Ratings Services assigned its 'AA+' rating to Colorado Springs, Colo.'s $10.8 million series 2007 sales and use tax revenue refunding bonds. Standard&Poor's also affirmed its 'AA+' rating on the city's 1999 sales and use tax revenue bonds. The rating reflects the city's: Extremely strong 15.5x coverage of pro forma maximum annual debt service (MADS) in 2006; Economic role as a service center for central Colorado; Dependence on sales and use tax revenues for general city operations, which represents a practical constraint on additional borrowing; and Strong legal provisions. The flow of sales and use tax revenues through the city's general fund rather than through a third party represents an operational risk that tempers the rating.
