The affirmed rating on Glendale, Ariz.'s bonds reflects the following credit strengths: * Underlying economic base of Glendale (GO rated 'AA'), * Strong legal provisions, and * Good debt service coverage. These strengths are offset by the absence of a debt service reserve and vulnerability to changes in statutory allocations of highway user revenue. The bonds are secured by a first lien on highway user taxes, which are collected by the state and distributed monthly to the city under a formula based on population, point of sale for fuel, and vehicle registration. Glendale, situated in the northwest area of the Phoenix metropolitan area, is benefiting from strong regional population and economic growth. The city's population has increased by more than
