Philadelphia GO Debt Rating Outlook Revised To Negative On Large, Persistent Expenditures

NEW YORK (S&P Global Ratings) Nov. 7, 2016--S&P Global Ratings revised the outlook on its 'A+' rating on Philadelphia's general obligation (GO) and GO-parity debt to negative from stable. The 'A+' rating is affirmed. The action reflects S&P Global Ratings' concern that the city's rising retirement costs, coupled with ongoing operating pressures, could weaken its already adequate reserves to less than 1% of expenditures over the next one year to two years. S&P Global also affirmed its 'AA+/A-1+' and 'AA+/A-1' rating on certain PAID debt, with PNC Bank and TD Bank providing liquidity support. At the same time, S&P Global Ratings assigned its 'A+' rating and negative outlook to the city's series 2016 GO refunding bonds and Philadelphia Municipal Authority's

...NEW YORK (S&P Global Ratings) Nov. 7, 2016--S&P Global Ratings revised the outlook on its 'A+' rating on Philadelphia's general obligation (GO) and GO-parity debt to negative from stable. The 'A+' rating is affirmed. The action reflects S&P Global Ratings' concern that the city's rising retirement costs, coupled with ongoing operating pressures, could weaken its already adequate reserves to less than 1% of expenditures over the next one year to two years. S&P Global also affirmed its '##+/A-1+' and '##+/A-1' rating on certain PAID debt, with PNC Bank and TD Bank providing liquidity support. At the same time, S&P Global Ratings assigned its 'A+' rating and negative outlook to the city's series 2016 GO refunding bonds and Philadelphia Municipal Authority's series 2016 city agreement revenue refunding bonds. "If reserves continue to decline and management doesn't have an adequate plan to address its structural imbalance and its pension and OPEB situation, we could lower the rating within the...

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