Standard&Poor's Ratings Services has raised its rating on Huntsville, Ala.'s natural gas revenue warrants to 'AA' from 'AA-'. The gas system's net revenues secure the bonds. The outlook is stable. We base the upgrade on the system's sustained strong financial performance. The new rating also reflects our assessment of the gas system's: Solid service area economy (general obligation rating: AAA/Stable); Low debt; Competitive rates, with a history of raising rates to meet increasing commodity costs; and Strong liquidity. In our view, the following factors mitigate these strengths: Sales volumes that are susceptible to weather patterns; and Fluctuations in commodity price. Located in northern Alabama, Huntsville, with a population of 179,653, has experienced steady growth and diversification from the
