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.
Standard and Poor’s upgraded San Francisco’s rating from AA to AA+ on general obligation bonds and up to AA for lease revenue bonds. Other credit rating agencies maintained high marks for The City, which noted San Francisco has a strong economy, budget and liquidity that can cover debt and spending, according to a release from Mayor Ed Lee’s office.
San Francisco was credited for having strong financial policies. However, weak spots challenging San Francisco’s fiscal status are bad debt as well as 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.”
Board of Supervisors President 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.”