Standard & Poor’s raised its long-term rating on Huntsville, Ala.’s outstanding water system revenue warrants to AAA from AA-plus. The credit outlook is stable.
“The upgrade reflects what we view as continued strong economic development within the system’s service area, strong management with demonstrated rate increases and planning procedures, the system’s emerging role as a regional water provider, and improving liquidity levels,” said credit analyst Edward McGlade.
The rating reflects Standard & Poor’s opinion of the system’s expanding customer base, which is characterized by above-average wealth and income levels; and exceptionally low water rates compared with the rates of regional and national peers, resulting in tremendous rate-setting flexibility.
