Standard&Poor's Ratings Services assigned its 'BBB' long-term rating and underlying rating (SPUR), with a stable outlook, to the Philadelphia Authority for Industrial Development's series 2007A fixed-rate lease revenue refunding bonds and series 2007B multimodal lease revenue refunding bonds. The long-term rating reflects the security provided by an unconditional lease agreement by which the city will make annual rent payments sufficient to pay debt service on the bonds; therefore, the rating reflects Philadelphia's general obligation (GO) credit characteristics. We will release the rating pertaining to the letter of credit (LOC) portion shortly. The long-term rating reflects the following weaknesses: The city's operating results have been historically erratic, although its financial position has improved over the past three years. The
