Standard&Poor's Ratings Services affirmed its 'AA-' Standard&Poor's underlying rating (SPUR), with a stable outlook, on Huntsville, Ala.'s natural gas revenue warrants. Net revenues of the gas system secure the warrants. The SPUR reflects: The city's ('AA+' GO debt rating) solid service area economy; A strong revenue collection method as gas charges appear on a combined monthly utility bill with water and electric charges (both utility systems are separately rated 'AA'); The system's sound operations; The competitive rates, coupled with a history of raising rates to meet increasing commodity costs; and The system's adequate financial operations as demonstrated by good coverage and liquidity. A historical susceptibility to weather patterns and fluctuations in commodity prices mitigate these strengths.
