The 'AA' rating on Huntsville, Ala.'s electric system revenue warrants reflects: Strong and stable financial performance with very high debt service coverage (DSC) levels, A strong regional economy, and A manageable capital improvement program with no plans for additional debt in the intermediate term. Offsetting these strengths are Huntsville's all-requirements relationship with a single supplier--Tennessee Valley Authority (TVA), which continues to address its high debt burden. The bonds are secured by a pledge of net revenues of the Huntsville electric system. The business profile of 2 reflects the electric system's proactive and experienced management team, sound operations, and strong competitive position--the latter being a result of the utility's favorable rates, low costs, and extremely low debt burden. Business profiles are
