Standard&Poor's Ratings Services affirmed its 'A' underlying rating (SPUR) on Mississippi Development Bank's series 2005 special obligation bonds, supported by Madison, Miss., based on Mississippi's moral obligation pledge. The outlook is stable. A pledge of the city's general fund revenues secures the bonds. A tax intercept agreement --under which the city agrees to the withholding of state taxes it is entitled to receive, including homestead ad valorem tax exemption reimbursements and sales tax revenues, to satisfy any delinquency in debt service payments -- provides additional security. City management used bond proceeds to fund improvements to municipal buildings and finance the purchase of real estate. Ultimately, the development bank's pledge to maintain a debt service reserve fund equal to
