S&P Global Ratings assigned its 'SP-1+' rating to Philadelphia's series 2017-2018A tax and revenue anticipation notes (TRANs). The rating reflects our opinion of the city's: Strong projected debt service coverage (DSC) of 5.4x at maturity; and Conservative budgeting practices that have resulted in a trend of year-end results better than budgeted. We believe financial oversight from the Pennsylvania Intergovernmental Cooperation Authority and the recent improvement in the city's general fund performance shown within the annual financial report provide additional support. The TRANs are a general obligation (GO) 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
