S&P Global Ratings assigned its 'SP-1+' rating to Philadelphia's series 2016-2017A tax and revenue anticipation notes (TRANs). The rating reflects our opinion of the city's: Strong projected debt service coverage (DSC) of 3.38x at maturity; and Conservative budgeting practices that have resulted in a trend of actual coverage exceeding projections. We believe financial oversight from Pennsylvania Intergovernmental Cooperation Authority and the recent modest improvement in general economic conditions provide additional support. The TRANs are a general obligation of Philadelphia, but the city has not pledged its taxing power and therefore is not required to levy ad valorem taxes for TRAN payments. The TRANs are payable from, and secured by, a pledge of general fund taxes and revenues attributable to fiscal
