The rating on Philadelphia's bonds reflects the city's stable liquidity and strong debt service coverage by net ending general fund cash balances (after disbursements) on the debt service segregation dates and on the TRANs' maturity date. The TRANs are secured by fiscal 1997 general fund receipts. The note repayment fund will be held by the trustee, First Union National Bank. The city must segregate and deposit principal of $150 million on May 1, 1997 and June 2, 1997, with interest to be deposited on June 27, 1997. Projected principal debt service coverage by net ending general fund cash balances is strong, at 3.9 times (x) on May 1 and 2.8x on June 2. Projected interest coverage on June 27, 1997
