Standard&Poor's Ratings Services affirmed its 'A' underlying rating (SPUR) on Mississippi Development Bank's series 2005 taxable special obligation bonds, issued for Tupelo, Miss.' urban renewal project, based on the state'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 tax money, including sales tax revenues and homestead reimbursement revenues it is entitled to receive to satisfy any delinquency in debt service payments -- provides additional security. A debt service reserve -- funded in an amount equal to the lesser of maximum annual debt service (MADS), 1.25x average annual debt service, or 10% of bond proceeds
