The 'AA' rating on Huntsville, Ala.'s GO warrants is based on the city's full faith and credit pledge. The rating reflects the city's: Strong and diversifying economy, as 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, 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. Located in northern Alabama, Huntsville, with a population of 158,216, has experienced steady growth and diversification from a historically concentrated military and aerospace employment base. High-technology
