Standard&Poor's Ratings Services assigned its 'AAA' rating and stable outlook to Huntsville, Ala.'s series 2012A general obligation (GO) refunding and capital improvement warrants and affirmed its 'AAA' rating, with a stable outlook, on the city's existing GO debt. The rating reflects our assessment of the city's: Growing service area economy that, despite the recession, has continued to expand and is poised for additional military-related employment; Extremely strong wealth with, what we consider, good income; Strong growth and a continually diversifying property tax base, coupled with some dependence on the military, aerospace, and electronic industries; Historically very strong finances, supported by, what we view as, strong management practices; and Moderate overall debt. The city's full-faith-and-credit pledge secures the warrants.
