S&P Global Ratings has assigned its 'AA' rating to Huntsville, Ala.'s taxable electric revenue warrants, series 2016B. The outlook is stable. On Nov. 8, 2016, we lowered the rating on the utility's senior-lien debt to 'AA' from 'AA+', reflecting weak fixed cost coverage levels. That downgrade was in conjunction with the issuance parity series 2016A warrants. (For more information on the downgrade, see the analysis published Nov. 9, 2016, on RatingsDirect.) 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
