NEW YORK (Standard&Poor's CreditWire) June 14, 2001--Standard&Poor's today assigned its triple-'B' rating to Philadelphia Gas Works (PGW) $120 million revenue bonds. The rating has been placed on CreditWatch Negative. Standard&Poor's triple-'B'-minus rating on PGW's subordinated bonds remains on CreditWatch with negative implications. The CreditWatch listing reflects the need for Philadelphia Gas Works to receive a material increase in its base rates in order to continue to meet its bond covenants and maintain an adequate level of liquidity in 2002 and beyond. A final ruling on the pending rate case filed on Jan. 5, 2001, for $65 million, is expected in early October 2001 at which time Standard&Poor's will resolve the CreditWatch placement.
