NEW YORK (Standard&Poor's) Feb. 5, 2009--Standard&Poor's Ratings Services has raised its long-term and underlying rating on Huntsville, Ala.'s electric system revenue warrants to 'AA+' from 'AA'. The outlook is stable. "In our opinion, the upgrade reflects sustained strong financial performance and an improved competitive position," said Standard&Poor's credit analyst Peter Murphy. In our view, the 'AA+' rating also reflects a strong and diverse regional economy; a manageable pay-as-you-go capital improvement program (CIP), with no plans for additional debt in the medium term; and the utility's role as the sole distributor of competitively priced, take-and-pay Tennessee Valley Authority power, which greatly reduces financial and operating risk. The utility provides service to a primarily residential customer
