Standard&Poor's Ratings Services assigned its 'BBB' rating to Philadelphia, Pa.'s series 2007 GO bonds. In addition, Standard&Poor's affirmed its 'BBB' long-term ratings and 'BBB' underlying ratings (SPURs) on the city parity debt. The 'BBB' rating reflects the following weaknesses: The city's operating results have been historically erratic, although financial position has improved over the past two years. The city continues to face cost increases related to health care and pensions, which coupled with expiring union contracts and expected continued tax rate cuts, will pressure future financial operations. There are continuing long-standing fiscal problems at the Philadelphia School District and Philadelphia Gas Works (PGW), which could cause the city operating stress. Overall net debt burden is high,
