Standard&Poor's Ratings Services has raised its long-term and underlying rating on Huntsville, Ala.'s electric system revenue warrants to 'AA+' from 'AA'. The outlook is stable. In our opinion, the upgrade reflects sustained strong financial performance and an improved competitive position. In our view, the 'AA+' rating reflects the electric system's: Sustained strong and stable financial performance, with very high debt service coverage levels; A strong and diverse regional economy; A manageable pay-as-you-go capital improvement program (CIP), with no plans for additional debt in the medium term; and The utility's role as the sole distributor of competitively priced, take-and-pay Tennessee Valley Authority (TVA) power, which greatly reduces financial and operating risk. The pledge of the Huntsville electric system's net
