Standard&Poor's Ratings Services assigned its 'SP-1+' short-term rating to Philadelphia Authority for Industrial Development, Pa.'s series 2012 taxable city service agreement revenue bonds, secured by a service agreement with Philadelphia, based on a cash flow analysis under Standard&Poor's short-term debt criteria. The rating reflects our assessment of the city's: Improved general fund liquidity, Access to ample alternate liquidity in the consolidated cash funds, and Historically accurate cash flow projections. The bonds are a limited obligation of the authority, payable solely from revenue under the service agreement, dated Oct. 1, 2012, between the authority and the city. Under the service agreement, Philadelphia agrees to pay a service fee sufficient to cover all bond principal and interest payments.
