Standard&Poor's Ratings Services affirmed its 'AA' underlying rating (SPUR), and stable outlook, on Glendale, Ariz.'s series 2007 transportation excise tax revenue obligations. The SPUR reflects what we view as the city's: Participation in the diverse Phoenix metropolitan statistical area (MSA); Strong maximum annual debt service (MADS) coverage of 2.7x; and Good bond covenants, with an additional bonds test (ABT) of 2.0x MADS and 1.5x debt service coverage (DSC). These strengths are somewhat mitigated we believe by the city's declining pledged revenue trends the past few years. An electorate-approved 0.5% transportation excise tax passed in 2001, levied to fund transportation improvements and transit programs, secures the obligations. The sales tax, which became effective Jan. 1, 2002, does not have
