The rating outlook on Philadelphia Gas Works' (PGW) bonds issued under the 1975 (closed lien) and 1998 (working senior lien) ordinances and subordinate-lien bonds has been revised to stable from negative, reflecting improved collections and the grant back of PGW's annual dividend payment to the city of Philadelphia, resulting in the restoration of adequate coverage levels. Further credit improvement hinges on PGW's establishing a track record for consistent billed revenue collections across diverse heating and economic conditions, as well as maintenance of financial operations that adequately cover debt and other obligations (such as dividend payments and loan repayments to the city) while providing enhanced liquidity. The 'BBB-' Standard&Poor's underlying rating (SPUR) and 'BB+' SPUR have been affirmed. The
