The 'AA-' rating on Glendale Ariz.'s refunding certificates of participation (COPs) reflects: Strong legal provisions, which includes an additional bonds test requiring 2 times (x) coverage of maximum annual debt service (MADS) and a covenant to increase rates should coverage fall below current annual debt service, History of senior-lien debt service coverage level of 46x maximum annual debt service in fiscal 2001, and projected coverage of over 40x MADS for combined junior- and senior-lien debt for the lifetime of the bonds, and The city's participation in the strong, diverse, Phoenix metropolitan service area. The COPs are secured by a lien on the city's excise, transaction privilege, franchise, and income taxes. The debt is subordinate and junior to the outstanding Glendale
