The rating on Colorado Springs, Colo.'s bonds, issued on behalf of Colorado Springs Utilities, reflects the fundamental strength of the combined utility (electric, gas, water, and sewer systems) to provide efficient, low-cost service. The rating also is supported by the electric system's competitiveness (54.7% of operating revenues in 1997), which also contributes to its strong business profile of "2" out of Standard&Poor's 10-point scale. The 1998 bonds will finance certain capital projects and are subordinate to outstanding senior lien bonds. Given the financial strength of the enterprise, and the favorable rate covenant and additional bonds test requiring a 1.3 times (x) multiple, there is no rating distinction. However, as part of its strategy to provide additional operating and
