Standard&Poor's Ratings Services has revised its outlook to positive from stable on Philadelphia Gas Works (PGW), Pa. At the same time, Standard&Poor's assigned its 'A-' rating and positive outlook to PGW's revenue refunding bonds, 13th series, issued under the PGW's 1998 ordinances (subordinate working lien). Standard&Poor's also affirmed its 'A-' ratings on PGW's parity obligations outstanding, and on its closed senior-lien debt issued under its 1975 ordinance. We base the outlook revision on our view of improved coverage levels over the past two years, and projection of further improvement. We understand that a portion of the proceeds of this series of bonds will be used to refund all closed senior-lien debt outstanding, effectively elevating
