Standard&Poor's Ratings Services affirmed its 'BBB-' Standard&Poor's underlying rating (SPUR), and stable outlook, on Maricopa County Industrial Development Authority, Ariz.'s correctional facilities contract revenue debt based on continued high occupancy and resulting sound adequate debt service coverage. The SPUR continues to reflect the industry's inherent weaknesses, including potential fluctuations in demand. A nonguaranteed contract with Arizona Department of Corrections that does not extend for the life of the bonds and can be terminated continues to present concerns. The SPUR also reflects: Arizona's annual appropriation risk, and Single project and litigation risk. Loan payments made to the authority from the cash flow generated by the financed prison facility secure the bonds. The sole source of funds to
