The rating on Huntsville ('AA' GO rating), Ala.'s warrants reflects the city's: Expanding economic base with above-average wealth and income levels and low unemployment rates; Low water rates compared with those of peers on a regional and national scale, resulting in tremendous rate flexibility; Sound financial performance and position that has generated solid debt service coverage levels of 2 times (x) in 1997; Moderate capital improvement program, which is expected to be funded from surplus cash; and Strong, proactive management team. Offsetting factors are a system whose peak capacity runs close to its current treatment capacity—this issue will be addressed with the funds from this financing—and the concentration of the aerospace and defense sectors of the economic base. Huntsville is
