Standard&Poor's Ratings Services affirmed its 'AA' underlying rating (SPUR), with a stable outlook, on the town of Frederick, Colo.'s outstanding sales and use tax revenue bonds. The rating reflects our view of the town's: Rapidly growing sales and property tax bases, with access to the Denver metropolitan area; Good financial performance with strong debt service coverage from pledged taxes; and A strong 2x additional bonds test. The rating is constrained by moderate concentration in the local economy, along with growth pressures that will increase capital and operating needs. The primary security for the bonds is a first-lien pledge on sales and use taxes, which include a 2% general sales tax, a general building use tax, and a motor
