Summary: Huntsville, Alabama; Appropriations; General Obligation

S&P Global Ratings has assigned its 'AAA' long-term rating to Huntsville, Ala.'s series 2018A and 2018B general obligation (GO) warrants. At the same time, S&P Global Ratings affirmed its 'AAA' rating on the city's previously issued GO debt and 'AA+' rating on the city's previously issued GO appropriation debt, based on the application of its "Issue Credit Ratings Linked To U.S. Public Finance Obligors? Creditworthiness" criteria, published Jan. 22, 2018, on RatingsDirect. The outlook is stable. The warrants constitute general obligations of the city and are secured by Huntsville's full-faith-credit-and-taxing-power pledge. The property tax pledge in Alabama is limited; the state has statutory tax limitations that include levies for debt service. Although the property tax is technically a limited tax,

...S&P Global Ratings has assigned its '###' long-term rating to Huntsville, Ala.'s series 2018A and 2018B general obligation (GO) warrants. At the same time, S&P Global Ratings affirmed its '###' rating on the city's previously issued GO debt and '##+' rating on the city's previously issued GO appropriation debt, based on the application of its "Issue Credit Ratings Linked To U.S. Public Finance Obligors' Creditworthiness" criteria, published Jan. 22, 2018, on RatingsDirect. The outlook is stable. The warrants constitute general obligations of the city and are secured by Huntsville's full-faith-credit-and-taxing-power pledge. The property tax pledge in Alabama is limited; the state has statutory tax limitations that include levies for debt service. Although the property tax is technically a limited tax, our analysis focuses on the strength of the city's full-faith-and-credit pledge, which we view to be of equal credit quality as an unlimited-tax general obligation. Proceeds from the series...

Summary