Standard&Poor's Ratings Services assigned its 'AA' long-term rating to Nashville and Davidson County Metropolitan Government (Metro), Tenn.'s series 2010D general obligation (GO) refunding bonds. At the same time, Standard&Poor's affirmed its 'AA' long-term and underlying rating (SPUR) on Metro's outstanding GO debt. The outlook on all ratings is stable. Factors that we believe continue to support the 'AA' ratings include: The Nashville MSA's continued economic soundness, and inherently strong wealth and income indicators; The steps taken by management to control expenditure growth; and Metro's moderate overall debt levels, coupled with reasonable capacity to fund projects identified in its capital improvement program (CIP). In our view, the rating is constrained by Metro's: Electorate-authorized (2006) property tax rate
