Philadelphia's 1998 Ordinance Gas Works Revenue Bonds, 15th Series, Rated 'A'; Other Ratings Affirmed

NEW YORK (S&P Global Ratings) July 28, 2017--S&P Global Ratings has assigned its 'A' rating to the City of Philadelphia's gas works revenue bonds, 15th series, issued under its 1998 ordinance. At the same time, S&P Global Ratings affirmed its rating on parity debt outstanding. The outlook is stable. We understand bond proceeds will refund $101 million of all commercial paper notes and about $8 million of long-term debt outstanding, while providing $165 million to support Philadelphia Gas Works' (PGW) capital program. "The ratings reflect what we view as good coverage of fixed costs and good liquidity," said S&P Global Ratings credit analyst Jeff Panger. PGW is the nation's largest municipally owned gas utility, serving approximately 500,000 customers in Philadelphia.

...NEW YORK (S&P Global Ratings) July 28, 2017--S&P Global Ratings has assigned its 'A' rating to the City of Philadelphia's gas works revenue bonds, 15th series, issued under its 1998 ordinance. At the same time, S&P Global Ratings affirmed its rating on parity debt outstanding. The outlook is stable. We understand bond proceeds will refund $101 million of all commercial paper notes and about $8 million of long-term debt outstanding, while providing $165 million to support Philadelphia Gas Works' (PGW) capital program. "The ratings reflect what we view as good coverage of fixed costs and good liquidity," said S&P Global Ratings credit analyst Jeff Panger. PGW is the nation's largest municipally owned gas utility, serving approximately 500,000 customers in Philadelphia. Low collection rates had plagued it for several years, although this has improved over the past decade. We believe the improvement resulted from low natural gas prices and lower demand associated with generally warmer weather,...

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