Standard&Poor's Ratings Services has assigned its 'BBB-' long-term rating to Philadelphia, Pa.'s gas works revenue refunding bonds, eighth series A (fixed rate), issued for Philadelphia Gas Works (PGW) under its 1998 ordinance. The bonds are subordinate to closed senior lien bonds (also rated 'BBB-') and senior to PGW's junior subordinate bonds (rated 'BB+'). At the same times, Standard&Poor's has affirmed its ratings on PGW's debt outstanding. The outlook is stable. In our opinion, the ratings reflect: A sizable service territory (with weak demographics) that is subject to open competition for gas supply and transmission, but not distribution; Dependence on Pennsylvania Public Utility Commission's (PUC) approval for base rate increases, coupled with already high rates; Stabilized collections,
