2008-11-20 02:24:04 -

During the course of routine surveillance Fitch Ratings affirms the 'AA' rating on approximately $20 million of outstanding Albuquerque, NM (the city) refuse and disposal improvement revenue bonds. The Rating Outlook is Stable.
The 'AA' rating reflects stable revenue sources provided by a city owned and operated system, competitive rate structure, and sound financial management with working capital

exceeding the 7.5% policy goal. Legal provisions are sound. Service area fundamentals are stable, resulting in steady and manageable tonnage growth.
The bonds are secured by net revenues of the solid waste fund. The main solid waste facility is a city owned and operated landfill with capacity to 2037. The city provides collection and disposal services for all residential and commercial waste within the city. Rates are levied on the water and sewer bill collected by the Albuquerque Bernalillo County Water Utility Authority and posted to the city's account upon receipt. Financial operations are strong with debt service coverage at 2.8 times (x) based on un-audited fiscal 2008 results, well above the 1.5x requirement. Despite reductions in residential and commercial tonnage over the last year, overall tonnage continues to increase due to the city's competitive tip fee attracting spot waste to the landfill. Fiscal 2009 projections include a 1% increase in residential and commercial tonnage, and based on first quarter results, the city reports that revenues are ahead of budget.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ... Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.


Fitch Ratings, New York

Jessalynn K. Moro, 212-908-0608

Janet H. Martin, 212-908-0507

Cindy Stoller, 212-908-0526 (Media Relations)

mailto:cindy.stoller@fitchratings.com