...S&P Global Ratings assigned its 'SP-1+' rating to Philadelphia's $300 million in series 2020-2021 tax and revenue anticipation notes (TRANs). The rating reflects our opinion of the city's: + Strong projected debt service coverage (DSC) of 2.6x at maturity with general fund cash; and + Sophisticated management that has navigated various cycles and historically budgets conservatively with trends of year-end results better than budgeted. We believe financial oversight from the Pennsylvania Intergovernmental Cooperation Authority (PICA) and the 2019 improvement in the city's general fund provide cushion for the upcoming years that are likely to generate revenue uncertainty. 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 pledge of general fund taxes and revenues. These amounts include general property taxes, wage taxes,...
