The Standard & Poor's underlying rating (SPUR) upgrade on Watertown, Mass.' bonds reflects the potential for continued strong tax base growth, economic diversification, and strong financial operations and position. Other rating factors include: The town's prime location among Boston's inner-ring cities, with easy access to downtown; A trend of strong tax base growth and economic diversification based on the availability of developable land; A trend of strong financial performance with added financial flexibility provided by tax base growth and significant general and special revenue fund reserves; and A low net debt burden offset by the state covering 60% of school debt, manageable future capital needs, and strong projected revenue growth allowing the town to limit future debt issuances. Watertown is
