The 'A' rating on Philadelphia Hospital and Higher Education Facility Authority, Pa.'s revenue refunding bonds, supported by Philadelphia, reflects the security provided by the commonwealth of Pennsylvania's moral obligation to seek appropriation to replenish the debt service reserve of the series 2003 bonds should a deficiency exist. As such, the rating on the series 2003 bonds reflects the commonwealth's general credit characteristics, as encompassed in its 'AA' GO debt rating, as well as the risk of nonappropriation by the Pennsylvania Legislature in the absence of any general or contractual obligation to do so. The primary source of payment for the bonds is expected to be lease revenue payments associated with the operation of the ICF/MR Facilities. Lease revenue payments are
