S&P Global Ratings revised the outlook on its 'A+' rating on Philadelphia's general obligation (GO) and GO-parity debt to negative from stable. The 'A+' rating is affirmed. The action reflects our concerns that the city's rising retirement costs coupled with ongoing operating pressures could weaken its already adequate reserves to less than 1% of expenditures over the next one year to two years. S&P Global also affirmed its 'AA+/A-1+' and 'AA+/A-1' rating on certain PAID debt, with PNC Bank and TD Bank providing liquidity support. At the same time, S&P Global Ratings assigned its 'A+' rating and negative outlook to the city's series 2016 GO refunding bonds and Philadelphia Municipal Authority's series 2016 city agreement revenue refunding bonds. The city's
