Moody's Investors Service yesterday said Philadelphia is in no immediate danger of defaulting on its bonds, but warned that many steps need to be taken before bondholers will see "meaningful enhancement" to long-term security.

In a credit comment prompted by recent developments in the city, including the creation of a new oversight authority, Moody's said city officials have presented a "reasonable plan" to assure debt service over the next two months. Philadelphia is rated B by Moody's.

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