S&P rates Austin hotel tax bonds AAA/A-1+

Standard & Poor's said it raised its underlying rating on Austin, Texas' hotel occupancy tax subordinate-lien variable-rate revenue refunding bonds to A- from BBB+ and assigned an AAA/A-1+ rating to the $119.3 million series 2008 bonds.

The upgrade reflects continued expansion of the revenue base and improved debt service coverage, S&P said.

The rating on the current issue is based on a letter of credit from Dexia Credit Local, which is rated AA/A-1+.

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