A recently completed comprehensive reassessment of real estate is good news for Philadelphia's debt ratios, according to the city's treasurer.
Philadelphia recently completed a comprehensive reassessment of all real estate leading to a revision of the total assessment to $99.5 billion from $38 billion.
When they are calculated, the debt ratios to assessed value will fall dramatically, city treasurer Nancy Winkler said.
Philadelphia's general obligation debt is rated A2 by Moody's Investors Service, A-minus by Fitch Ratings and BBB-plus by Standard & Poor's.
Standard & Poor's has not done a formal review of the impact of the changed debt ratios, S&P analyst Nicole Ridberg said.
In the short term Fitch is unlikely to change the rating because of the new assessment value, said Fitch director Eric Friedman. It is good that Philadelphia has a better grasp of its property values; Fitch wants to see how the reassessment is implemented and its impact before considering any action, Friedman said.
Moody's is determining the effect of the revised assessed value on actual values, said vice president Geordie Thompson. Moody's uses the latter in calculating debt burdens.
