The short-term 'A-1+' rating on Colorado Springs, Colo.'s bonds reflects liquidity support provided through a SBPA from State Street Bank and Trust, while the long-term 'AA' rating continues to reflect the following strengths of the city: Strong financial management, resulting in total coverage of about 2x on a historical and projected basis; Competitive rates in each of the city's four utility systems; A diverse mixture of resources in the electric system, which accounts for more than 50% of the utilities' operation; and A stable regional economic base that absorbs much of the growth in the surrounding area. Concern over the a substantial capital improvement program--largely designed to acquire resources to accommodate the customer growth in the city's combined utilities--offsets the
