The 'AA-' rating on Sioux City, Iowa's series 2005 GO bonds reflects the following credit factors: The city's position as a regional economic and employment center, A stable population and tax base, Balanced financial operations, and A moderate debt burden. Offsetting these strengths are: Economic indicators that do not compare favorably with national averages; Reliance on sales tax revenues, which are inherently subject to economic volatility, to pay debt service; and The city's high debt service carrying charges. Additionally, the 'AA-' standard long-term rating and Standard&Poor's underlying rating (SPUR) on the city's outstanding debt have been affirmed. Sioux City is a regional trade, service, and health care center for west-central Iowa and portions of South Dakota and Nebraska,
