The 'A-1+' short-term rating on Colorado Springs, Colo.'s bonds reflects liquidity support provided through an SBPA from Dexia Credit Local, while the long-term 'AA' rating continues to reflect the following strengths of the city: Strong financial management, resulting in total debt service coverage of about 2.0x on a historical and projected basis, although fiscal 2003 debt service coverage levels dipped to 1.7x due to drought conditions that reduced water sales and higher-than-usual natural gas costs that were not fully recovered during the fiscal year; Competitive rates in each of its four utility systems, although planned capital improvements will be accompanied by significant rate increases, particularly in the water division; A diverse mixture of resources in the electric system, which accounts
