PGW Bond Ratings Upgraded Underscoring Continued Financial Strength
Posted on: Oct 12, 2026For the second consecutive year, PGW’s bond ratings have increased, ranking in the ‘A’ category of three major credit rating agencies, signaling strong confidence in the company’s financial health and operations
PHILADELPHIA (October 12, 2026) – As Philadelphia Gas Works (PGW) closes the books on another fiscal year, three global credit rating industries -- S&P Global Ratings, Fitch Ratings, and Moody’s Ratings – have either raised or maintained their long-term ratings of the City of Philadelphia’s Gas Works Revenue Bonds.
“We are proud of this momentum and remain committed to building upon the financial stability that supports our customers, our workforce and the city we serve,” said Joseph F. Golden, Jr., Executive Vice President & Acting Chief Financial Officer at PGW. “The upgraded rating and positive outlook reflect the strength of our financial foundation and underscores the confidence in PGW’s ability to maintain critical infrastructure, diversify and grow revenue, and deliver safe, affordable and reliable natural gas to Philadelphians.”
S&P Global Ratings upgraded its long-term rating and underlying rating (SPUR), on the City of Philadelphia’s Gas Works Revenue Bonds issued under its 1998 general ordinance and the 18th Series (approximately $236.7 million) Gas Works Revenue Refunding Bonds from ‘A’ to 'A+'. The ratings agency also affirmed its 'AA+/A-1' dual rating on the following issues: the 1998 ordinance, 8th series B, C, D, and E bonds, jointly supported by a letter of credit from TD Bank N.A. According to S&P Global Ratings, these upgraded ratings were cited as stemming from several factors, including:
- PGW’s increased debt capacity, which is expected to maintain the utility’s exceptionally strong financial coverage as it issues planned debt to support PGW’s substantial capital program
- The Public Utility Commission’s (PUC) recent decision to approve PGW’s rate request
- The growing share of natural gas purchased through pre-pay agreements
- Significant advancement made in the main replacement program
Fitch Ratings has maintained an 'A' rating on the City of Philadelphia’s Gas Works Revenue Bonds for its $236.7 million 18th Series Gas Works Revenue Refunding Bonds. According to Fitch, the 'A' rating illustrates PGW's strong and stable financial profile. The agency also cites PGW’s:
- Strong revenue sustainability
- Position as the exclusive natural gas distributor in Philadelphia
- Affordable customer rates
- Generally, constructive regulatory environment
Moody’s Ratings has updated its credit analysis of PGW and assigned an A3 ‘outlook positive’ rating. Moody's Ratings also assigned a revised A3 ‘outlook positive’ rating to the City of Philadelphia’s Gas Works Gas Works Revenue Refunding Bonds, Eighteenth Series (1998 General Ordinance). The added ‘outlook positive’ signals a potential upgrade in the medium-term with continued expected improvement in financial health. Moody’s assigned this rating citing:
- LNG assets that create opportunities for strategic optimization due to storage capacity and efficient gas cost management
- Stable collection rates
- Strong debt service coverage ratio (DSCR) above the1.5x as required by the rate covenant
These ratings mark a significant point in PGW’s financial evolution over the past 25 years. Last year was the first time in the company’s nearly 200-year history that all three rating agencies rated its bonds in the ‘A’ category. Coupled with increasing its collection rate to 97% and exceeding its goals for maintaining and replacing critical natural gas infrastructure, PGW is poised to sustain this progress and continue to shape Philadelphia’s evolving energy future.
“The upgraded bond ratings are a major accomplishment and a testament to the continued hard work of PGW’s management team,” said City Treasurer Jacqueline Dunn regarding the S&P and Moody’s actions.
Read the full rating report HERE.
For Media help call our media hotline - Phone: (267) 249-7542
