The 'A-' rating on Philadelphia, Pa.'s water and sewer revenue bonds reflects: Stable financial performance, which will be bolstered by a new multiyear rate plan; Sound debt service coverage of senior revenue debt managed to the 1.2 times (x) level following deposits to the capital and rate-stabilization accounts; and A seasoned management team, which emphasizes and is achieving improved system maintenance, stronger collections, and more comprehensive fiscal monitoring systems. Continuing offsetting credit factors include a slowly declining customer base, still-below-standard collection rates, and a sizeable capital plan. Philadelphia's water and wastewater systems provide service to 1.67 million and 2.22 million people, respectively, in the city and suburbs. The systems predominantly serve retail residential customers. The number of retail accounts has
