Standard&Poor's Ratings Services affirmed its 'AA' underlying rating (SPUR) on Glendale, Ariz.'s series 2007 transportation excise tax revenue obligations. The outlook is stable. The rating reflects our view of: The city's participation in the diverse Phoenix metropolitan statistical area (MSA); Strong 2.96x maximum annual debt service (MADS) coverage; Good bond covenants, with an additional bonds test (ABT) of 2.0x MADS and 1.5x debt service coverage (DSC); and The bond's first lien on excise taxes as special revenue restricted for transportation that is held in a separate transportation fund, which we believe insulates the revenue from potential encroachment from other funds. Somewhat offsetting the preceding strengths are the city's below average wealth and income indicators. An electorate-approved 0.5% transportation
