...S&P Global Ratings lowered its rating on the city of Huntsville, Ala.'s electric revenue bonds to '##-' from '##'. The outlook is stable. The downgrade primarily reflects the application of our "U.S. Municipal Retail Electric And Gas Utilities: Methodology And Assumptions" criteria (published Sept. 27, 2018). Under the revised criteria, we believe that Huntsville's fixed cost coverage (FCC) and liquidity metrics no longer support the previous rating. The net revenue of the city's electric system secures the bonds. At fiscal year-end 2018, the utility had $79 million of long-term debt outstanding. The rating reflects our view that Huntsville has a very strong enterprise risk profile, and a strong financial risk profile. The enterprise risk profile reflects our view of Huntsville's: + Very strong service area economic fundamentals, reflecting a deep and diverse service area highlighted by more than 191,000 customers, with residential customers accounting for almost 50% of revenue and energy...
