Standard&Poor's Ratings Services has affirmed its 'AA' rating on Huntsville, Ala.'s natural gas revenue warrants. The outlook is stable. The gas system's net revenues secure the bonds. The rating reflects our assessment of the gas system's: Solid service area economy; Low debt; Competitive rates, with a history of raising rates to meet increasing commodity costs; and Strong liquidity. In our view, the following factors temper these strengths: Sales volumes that are susceptible to weather patterns; and Fluctuations in commodity price. Located in northern Alabama, Huntsville, with an estimated population of 176,412 in 2012, has experienced steady growth and diversification from the historically concentrated military and aerospace employment base. High-tech firms, including Sanmina-SCI Corp., Intergraph Corp., and ADTRAN Inc.
