The rating on Huntsville, Ala.'s bonds reflects: * A moderately growing tax base, with concentration among federal, military, aerospace, and related employers; * Sound economic performance, evidenced by above-average wealth and income indicators and below-average unemployment statistics; * Solid financial performance resulting in three consecutive fiscal year operating surpluses; and * High debt. The lease rating reflects the city's strong credit characteristics, and lease structure that includes annual appropriation risk and strong project essentiality. Despite the shrinking of federal-defense and space- exploration budgets, the city's economy continues to grow at a moderate rate benefiting from a highly educated work force. Assessed value has averaged annual increases of 6% over the past ten years to $1.172 billion in fiscal 1996. A
