Standard&Poor's Ratings Services affirmed its 'AA' rating, with a stable outlook, on Huntsville, Ala.'s water system revenue warrants. The rating reflects the system's: Expanding economic and customer base, which is characterized by above-average wealth and income levels; Exceptionally low water rates compared with the rates of regional and national peers, resulting in tremendous rate-setting flexibility; Solid financial performance and position, which has generated sound debt service coverage levels; Moderate capital improvement program, which management expects to fund from surplus cash; and Strong, proactive management team. A pledge of net revenues of the utility system secures the warrants. Located in northern Alabama, Huntsville, with a population of 166,313, has experienced steady growth and diversification away from a historically concentrated
