S&P Global Ratings has lowered its rating on the City of Huntsville, Ala.'s electric system debt, issued for the Huntsville Electric Utility Board, to 'AA' from 'AA+'. At the same time, S&P Global Ratings assigned its 'AA' rating to Huntsville's electric revenue warrants series 2016A. The outlook is stable. The downgrade reflects weak fixed cost coverage levels. The rating reflects the following credit strengths: A deep service area economy and a diverse, residential customer base that promotes revenue stability; A distribution utility with limited operating risks, with power purchased from the Tennessee Valley Authority (TVA); and Low leverage; management expects to issue only a modest amount of debt to meet capital needs over the next five years. The rating also
