S&P Global Ratings has assigned its 'AA' rating to the city of Huntsville, Ala., electric revenue warrants series 2017A. At the same time, S&P Global Ratings affirmed its 'AA' rating on parity obligations outstanding. The outlook is stable. 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); Low rates, with weighted average revenue per kilowatt-hour that is just 86% of the state average in 2015, the most recent year of available information; and Low leverage. Management expects to issue only a modest amount of debt to meet the utility's capital needs
