The 'A-' rating on Philadelphia, Pa.'s water and sewer revenue bonds reflects: Stable financial performance; Adequate debt service coverage of senior revenue debt at 1.20x, with 1.08x coverage of revenue debt, and transfers to general fund, capital fund, and residual fund; and A seasoned management team that emphasizes, and is achieving, improved system maintenance, stronger collections, and more comprehensive fiscal monitoring systems. Continuing offsetting credit factors include a slowly declining customer base, still-below-standard collection rates, and a sizeable capital improvement plan (CIP). Philadelphia's water and wastewater systems provide service to roughly 1.7 million and 2.2 million people, respectively, in the city and suburbs. The systems serve predominantly retail residential customers. The number of retail accounts has been slowly declining over
