The 'AA' rating on Huntsville, Ala.'s GO sewer refunding bonds 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 tax base, with some concentration among the aerospace and electronic industries; Solid financial performance and sound management practices, which are 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 for operating revenues is an offsetting credit factor. The city's full faith and credit pledge secures the bonds. Bond proceeds will be used to refund series 1995-SRF sewer revenue warrants outstanding. Located in northern Alabama, Huntsville, with a population of 158,216,
