NEW YORK (Standard&Poor's) Dec. 3, 2008--Standard&Poor's Ratings Services assigned its 'BBB' long-term rating, and stable outlook, to Philadelphia, Pa.'s $184.7 million general obligation (GO) bonds, series 2008. At the same time, we affirmed our 'BBB' long-term rating, and stable outlook, on the city's underlying ratings (SPURs) and parity debt outstanding. The GO and SPUR ratings reflect our opinion that the city's operating results have been historically erratic, and although its financial position has improved between fiscals 2005-2007, reserves have declined. The ratings also reflect that Philadelphia continues to face cost increases related to health care and pensions that, coupled with the current economic slowdown, are pressuring financial operations. Other concerns are the continuing long-standing fiscal challenges
