The rating on Huntsville, Ala.'s warrants reflects: An expanding economic base with above-average wealth and income levels and low unemployment rates, Low water rates when compared to those of peers on a regional and national scale resulting in tremendous rate flexibility, Sound financial performance and position that generated solid debt service coverage levels of 2 times (x) in fiscal 2000, A moderate capital improvement program that is expected to be funded from surplus cash, and A strong and proactive management team. Offsetting factors are: A system whose peak capacity runs close to its current treatment capacity (this issue will be addressed with the funds from this financing), and Concentration in the aerospace and defense sectors of the economic base. Huntsville
