San Francisco’s credit rating went up to the highest grade it has received from major bond rating agencies in city history, the mayor’s office announced today.
Standard and Poor’s, or S&P, upgraded the city’s rating from AA to AA+ on general obligation bonds and up to AA for lease revenue bonds.
Other credit rating agencie maintained high marks for the city, which noted the city has a strong economy, budget and liquidity that can cover debt and spending, according to a release from Mayor Ed Lee’s office.
The city was credited for having strong financial policies but a weak spot challenging the city’s fiscal status is bad debt and large pension and post-employment benefit costs, according to the release.
In a statement the mayor said, “We are creating investor confidence in our city with strategic investments while applying strict budgetary and financial control to protect San Francisco’s continuing economic recovery.”
City Supervisor David Chiu also said in a statement, “In addition to our strengthening economy, today’s upgrades reflect the smart choices we’ve made in recent years to move to a two-year budget process and to save more money in better budget years.”
Sasha Lekach, Bay City News