The rating upgrade on Philadelphia, Pa.'s debt reflects a trend of sound financial operations, five consecutive years of balanced operations, as demonstrated in budgeting and long-term financial plans, which require approval by the fiscal oversight authority, Pennsylvania Intergovernmental Cooperation Authority (PICA). These factors are constrained by weak economic trends, declining assessed valuation, a large underfunded pension, and a high debt burden due to deficit financing. Since fiscal 1992, the administration and city council have cooperated to pursue structural budgetary balances that were necessary for the city to emerge from its fiscal crisis. Additionally, the school district, which is independent but relies on the city for tax approval, has been under fiscal pressures. There is uncertainty concerning additional financial resources for
