The rating on El Paso, Texas' bonds reflects * Economic activity drawn to the largest U.S. city on the Mexican border, * Stabilizing economic presence of Fort Bliss and the University of Texas, * Moderating expenditure growth and good reserves, and * Manageable though growing debt. The rating outlook was changed to stable from negative to reflect improved financial management and reporting capabilities evidenced in the timely fiscal 1997 comprehensive annual financial report, which received an unqualified opinion letter. The El Paso (population 617,000) economy is tied closely to U.S.-Mexican trade. Some 320 maquiladora manufacturing plants linked with Ciudad Juarez, Mexico have contributed to economic growth and diversification. The low cost of doing business in El Paso continues to attract
