Officials in Philadelphia will continue to face daunting economic and budget problems despite the recent success of Mayor Edward Rendell in improving the city's finances, investors say.

On Monday, Moody's Investors Service upgraded bonds issued by the Pennsylvania Intergovernmental Cooperation Authority, the state agency that sells bonds on behalf of the city, to Baa1 from Baa. Standard & Poor's Corp. rates PICA debt A-minus, and Fitch Investors Service rates it BBB-plus.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.