The 'AA-' rating on Glendale, Ariz.'s junior-lien excise tax revenue refunding certificates of participation (COPs) and the 'AA' Standard&Poor's underlying rating (SPUR) on the senior-lien excise tax revenue debt reflect the city's: Underlying credit strengths ('AA' GO debt rating), including its participation in the diverse Phoenix MSA; High debt service coverage (DSC) levels; and Good legal covenants, including a 2x additional bonds test (ABT) for the junior-lien debt and a 3x ABT for the senior-lien debt. Offsetting factors include the city's: Slow amortization of total principal outstanding, which is structured to match future project revenues; and Potential for slow growth or decline in state-shared revenues over the next few years. Rental payments made by Glendale under a lease
