S&P Global Ratings affirmed its 'AA-' rating on the city of Huntsville, Ala.'s electric revenue bonds. The outlook is stable. The net revenue of the city's retail electric system secures the bonds. At fiscal year-end 2022, the utility had $69 million of electric system debt outstanding. The rating reflects continued growth within Huntsville Utilities' (HU) service area, supported by load following power purchased from the Tennessee Valley Authority (TVA). Key credit factors include HU's solid fixed cost coverage (FCC) and improved but still thin liquidity, and the effective pass-through of power costs while still maintaining affordable rates. The rating further reflects HU's following credit factors: Role as a TVA distributor, which we believe reduces its operating risk--we view TVA's power
