The rating on the city of Glendale, Ariz.'s debt reflects the lack of a debt service reserve account, potential for changes in statutory allocations of highway user revenues to Glendale that could lower coverage, and a decline in vehicle registrations both in Maricopa County and the state level for 1994. These risks are offset by: Stable historical growth in Glendale's apportionment of highway user revenues, combined with steady population growth; A strong and diversified economic base ('AA-' G.O. rating) Coverage at 2.02 times (x) current maximum annual debt service requirement (MADS), and Solid legal provisions including a statutory 2.0x, historical bonds test. The bonds are secured by a first lien on highway user taxes, which are collected by the state
