Standard&Poor's Ratings Services affirmed its 'BBB+' underlying rating (SPUR) on the Watsonville Redevelopment Agency, Calif.'s series 2004A nonhousing tax allocation bonds (TABs) and series 2004B-1 and 2004B-2 housing TABs. The outlook is stable. The rating reflects our view of the project area's: Diverse taxpayer concentration, with the top 10 taxpayers accounting for 23% of incremental assessed value (AV); Strong maximum annual debt service (MADS) coverage of 3.4x based on nonhousing tax increment revenue, and strong coverage of 2.7x MADS based on housing set-aside tax increment revenue; and Fully cash-funded debt service reserve. Partly offsetting the above strengths, in our view, are the project area's: Moderately high 0.42 volatility (base year to total AV) ratio, and Release of semiannual
