NEW YORK (S&P Global Ratings) Nov. 9, 2016--S&P Global Ratings has lowered its rating on the City of Huntsville, Ala.'s electric system debt's, issued for the Huntsville Electric Utility Board, to 'AA' from 'AA+'. At the same time, S&P Global Ratings assigned its 'AA' rating to Huntsville's electric revenue warrants series 2016A. The outlook is stable. "The downgrade reflects weak fixed cost coverage levels," said S&P Global Ratings credit analyst Jeff Panger. The rating reflects the following credit strengths: A deep service area economy and a diverse, residential customer base that promotes revenue stability; A distribution utility with limited operating risks, with power purchased from the Tennessee Valley Authority (TVA); and Low leverage; management expects to issue only a modest
