We consider the offline version of the routing and wavelength assignment (RWA) problem in transparent all-optical networks. In such networks and in the absence of regenerators, the signal quality of transmission degrades due to physical layer impairments. We initially present an algorithm for solving the static RWA problem based on an LP relaxation formulation that tends to yield integer solutions. To account for signal degradation due to physical impairments, we model the effects of the path length, the path hop count, and the interference among ligthpaths by imposing additional (soft) constraints on RWA. The objective of the resulting optimization problem is not only to serve the connection requests using the available wavelengths, but also to minimize the total accumulated signal degradation on the selected lightpaths. Our simulation studies indicate that the proposed RWA algorithms select the lightpaths for the requested connections so as to avoid impairment generating sources, thus dramatically reducing the overall physical-layer blocking when compared to RWA algorithms that do not account for impairments.