Standard&Poor's Ratings Services assigned its 'AA-' rating, and stable outlook, to Springdale, Ark.'s series 2006 sales and use tax refunding and improvement bonds. The rating reflects the city's: Closed flow of funds, closed lien, and mandatory early redemption clauses in the bonds' legal provisions; Prominent role in northwest Arkansas' regional economic base, which has consistently led to robust population and sales tax revenue growth for more than a decade; and Sound maximum annual debt service (MADS) coverage -- Based on a conservative, zero-growth scenario, revenues from the 12 most recent months alone would generate 1.3x MADS coverage. The potential retail competition Springdale faces in the multicity regional economy -- including nearby Rogers, Ark.; Bentonville, Ark.; and Fayetteville, Ark.
