...June 14, 2021 FARMERS BRANCH (S&P Global Ratings) June 14, 2021--S&P Global Ratings assigned its 'A+' long-term rating to Philadelphia's $303.78 million series 2021B taxable water and wastewater revenue refunding bonds. At the same time, we affirmed our 'A+' long-term ratings and underlying ratings (SPURs) on the city's existing $2.3 billion of water and wastewater revenue bonds. The outlook on the ratings is stable. Factors that we view as key credit drivers include, liquidity that remains ample, even with continued planned use of the RSF to lessen rate shock; a large, regulatory-driven capital improvement plan (CIP) that could lead to a doubling of debt by 2027; and the management and governance team's ongoing need to balance operational needs and revenue requirements with affordability concerns given Philadelphia's median household effective buying income is 76% that of the U.S., elevated poverty rate of approximately twice that of the U.S. level, and a still-elevated unemployment rate...
