The stability is investigated of the swirling flow between two concentric c
ylinders in the presence of stable axial linear density stratification, for
flows not satisfying the well-known Rayleigh criterion for inviscid centri
fugal instability, d(Vr)(2)/dr < 0. We show by a linear stability analysis
that a sufficient condition for non-axisymmetric instability is, in fact, d
(V/r)(2) /dr less than or equal to 0, which implies a far wider range of in
stability than previously identified. The most unstable modes are radially
smooth and occur for a narrow range of vertical wavenumbers. The growth rat
e is nearly independent of the stratification when the latter is strong, bu
t it is proportional to it when it is weak, implying stability for an unstr
atified flow. The instability depends strongly on a nondimensional paramete
r, S, which represents the ratio between the strain rate and twice the angu
lar velocity of the flow. The instabilities occur for anti-cyclonic flow (S
< 0). The optimal growth rate of the fastest-growing mode, which is non-os
cillatory in time, decays exponentially fast as S (which can also be consid
ered a Rossby number) tends to 0. The mechanism of the instability is an ar
rest and phase-locking of Kelvin waves along the boundaries by the mean she
ar flow. Additionally, we identify a family of (probably infinitely many) u
nstable modes with more oscillatory radial structure and slower growth rate
s than the primary instability. We determine numerically that the instabili
ties persist for finite viscosity, and the unstable modes remain similar to
the inviscid modes outside boundary layers along the cylinder walls. Furth
ermore, the nonlinear dynamics of the anti-cyclonic flow are dominated by t
he linear instability for a substantial range of Reynolds numbers.