(Bloomberg) -- Philadelphia’s credit rating was raised by S&P Global, which cited the city’s economic rebound and the strides it has made toward covering its obligations to workers’ retirement funds.
S&P raised the rating one step to A+, the fifth highest grade. The company cited its “long-term commitment to maintaining a credit-supportive financial profile,” including the replenishment of its reserves and track record of making annual pension payments.
While the city is being upgraded, it still faces some fiscal pressure, in part due to its reliance on about $1.4 billion of federal stimulus funding that is set to lapse, S&P said. Philadelphia is also anticipating operating deficits of more than 3% of its budget in fiscal 2026 and 2027.
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