Standard&Poor's Ratings Services assigned its 'BBB' long-term rating, and stable outlook, to Philadelphia, Pa.'s general obligation (GO) bonds, series 2008. At the same time, we affirmed our 'BBB' long-term rating, and stable outlook, on the city's underlying ratings (SPURs) and parity debt outstanding. The GO and SPUR ratings reflect our opinion of the following weaknesses: The city's operating results have been historically erratic, and although its financial position has improved between fiscals 2005-2007, reserves have declined; Philadelphia continues to face cost increases related to health care and pensions that, coupled with the current economic slowdown, are pressuring financial operations; Continuing long-standing fiscal challenges at the Philadelphia School District and Philadelphia Gas Works (PGW), the latter of which has
