Standard&Poor's Rating Services affirmed its 'BBB' rating, and stable outlook, on Philadelphia Authority for Industrial Development, Pa.'s lease revenue 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 and therefore the rating is based on Philadelphia's general obligation (GO) credit characteristics. The ratings reflect what we view as the city's: Historically erratic operating results, evidenced by growing reserves between fiscals 2005-2007, declines in reserves in fiscals 2008 and 2009, and improvements in fiscals 2010 and 2011 projected; Increased costs related to health care and pensions that, coupled with diminished revenues caused by the effects of the recession,
