The 'AA' rating on Colorado Springs, Colo.'s series 2004 GO refunding bonds reflects the city's: Economic strength and diversity as a service center for central Colorado, Strong tax base with good growth in assessed property valuation, Sustained low debt levels and a very short six-year maturity on the bonds, and Strong financial management and solid fiscal policies. Credit concerns include some recent softness in the local defense and technology sectors. The bonds are noncallable, and are being issued to refund the city's 1993A GO bonds. They are secured by ad valorem property taxation, yet limited to the mill levy limitations approved by voters in 1989 at 7 mills. The current rate of 5.032 mills is down from 5.607 in 1998.
