Standard&Poor's Ratings Services assigned its 'A' long-term rating, and stable outlook, to Philadelphia, Pa.'s series 2009 water and wastewater revenue bonds and affirmed its 'A' long-term rating and underlying rating (SPUR), with a stable outlook, on the city's existing water and wastewater revenue debt. In our opinion, positive credit factors include: Despite the reliance on rate stabilization support, financial performance has been stable. With the rate stabilization funds, coverage of senior-lien debt service is adequate at 1.20x with 1.08x coverage of revenue debt and transfers into the general, capital, and residual funds. Rates, which are currently low, should rise to only moderate levels due to proposed rate increases that took effect in fall 2008. The last rate increase
