Standard&Poor's Ratings Services assigned its 'AA-' rating and stable outlook to Springdale, Ark.'s series 2012 sales and use tax revenue bonds. The rating reflects our opinion of the city's: Participation in the rapidly expanding northwest Arkansas metropolitan statistical area (MSA), Good income and per capita retail sales, 1.68x maximum annual debt service (MADS) coverage, and Lack of plans to issue additional debt. We believe the rating is somewhat constrained by the city's: Retail competition faced by neighboring municipalities, including Rogers, Bentonville, and Fayetteville; and Pledged revenue that experienced a cumulative 22% decrease from fiscal years 2006-2010. A 1% sales and use tax levied in the city secures the bonds. A debt service reserve that is cash funded at
