The 'AA' rating on Huntsville, Ala.'s GO school capital improvement and refunding warrants 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. A 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 fund the construction of public school buildings and refund series 1995 GO warrants outstanding. Located in northern Alabama, Huntsville, with a
