We have some other good news to share, Mayor Edwin M. Lee just announced major bond rating agencies have upgraded and affirmed San Francisco’s strong credit after the City met with Moody’s Investors Service (Moody’s), Standard & Poor’s (S&P) and Fitch Ratings (Fitch) in August.
“At a time when many cities and counties across California and the U.S. have seen their credit ratings suffer amid lingering financial uncertainty, San Francisco’s upgraded bond ratings are leading the state,” said Mayor Lee. “We are creating investor confidence in our City with strategic investments while applying strict budgetary and financial controls to protect San Francisco’s continuing economic recovery. We must continue our work that has stabilized San Francisco’s economy, created jobs, and has made San Francisco an economic engine for the entire region.”
The S&P upgrade recognizes San Francisco’s credit strength providing very strong levels to cover both debt service and expenditures.
But large pension and other post employment benefit obligations will continue to be a challenge for our City. Contributions exceed 10 percent of total expenditures for fiscal year 2012.