Standard&Poor's Ratings Services assigned its 'AA' rating, and stable outlook, to Huntsville, Ala.'s series 2005A and 2005B GO refunding warrants. The rating reflects the city's: Strong and diversifying economy, which is evidenced by above-average wealth and income levels and below-average unemployment rates; Moderately growing and diversifying property tax base, coupled with some concentration among the aerospace and electronic industries; Solid financial performance and sound management practices, characterized by operating surpluses and healthy reserves; and Moderate overall debt levels, coupled with high annual debt service requirements. The city's reliance on sales taxes, subject to economic cyclicality, for operating revenues is an offsetting credit factor. The city's full faith and credit pledge secures the warrants. The city will use warrant
