Summary: Huntsville, Alabama; Appropriations; General Obligation

S&P Global Ratings has assigned its 'AAA' long-term rating to Huntsville, Ala.'s $32.7 million series 2020A and $13.2 million 2020B general obligation (GO) warrants and $32.5 million series 2020C and $28.1 million 2020D taxable GO warrants. At the same time, S&P Global Ratings affirmed its 'AAA' rating on the city's previously issued GO debt, and its 'AA+' rating on the city's previously issued GO appropriation debt. The outlook is stable. The city's full faith and credit secures the warrants. 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 limited, our analysis focuses on the strength of the city's full-faith-and-credit pledge, which we view

...S&P Global Ratings has assigned its '###' long-term rating to Huntsville, Ala.'s $32.7 million series 2020A and $13.2 million 2020B general obligation (GO) warrants and $32.5 million series 2020C and $28.1 million 2020D taxable GO warrants. At the same time, S&P Global Ratings affirmed its '###' rating on the city's previously issued GO debt, and its '##+' rating on the city's previously issued GO appropriation debt. The outlook is stable. The city's full faith and credit secures the warrants. 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 limited, 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 GO. Based on the application of our "Issue Credit Ratings Linked To U.S. Public Finance Obligors' Creditworthiness" criteria, published Nov. 20, 2019, we rate the warrants on par with...

Summary