NEW YORK (Standard&Poor's) July 13, 2009--Standard&Poor's Ratings Services has assigned its 'BBB-' long-term rating to Philadelphia, Pa.'s gas works revenue refunding bonds, eighth series A (fixed rate), issued for Philadelphia Gas Works (PGW) under its 1998 ordinance. The bonds are subordinate to closed senior lien bonds (also rated 'BBB-') and senior to PGW's junior subordinate bonds (rated 'BB+'). At the same times, Standard&Poor's has affirmed its ratings on PGW's debt outstanding. The outlook is stable. In our opinion, the ratings reflect a sizable service territory (with weak demographics); dependence on Pennsylvania Public Utility Commission's (PUC) approval for base rate increases, coupled with already high rates; stabilized collections, financial operations, and coverage levels; and moderately
