News Releases
The latest news and announcements from Mayor London N. Breed

Mayor Lee Announces San Francisco’s Credit Rating Upgraded to Highest Grade in City History

Major Bond Rating Agency Fitch Upgrades While Moody’s, S&P Affirms City’s High Credit Ratings

Mayor Edwin M. Lee today 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 December 2015 in connection with the proposed sale of approximately $52.1 million in general obligation bonds to finance the construction, reconstruction, purchase and/or improvement of park and recreation facilities located within the City under the jurisdiction of the Recreation and Park or the Port of San Francisco.

“Because of our strong, diverse economy and fiscally responsible budgetary and financial controls, San Francisco’s credit rating has never been higher,” said Mayor Lee. “San Francisco is creating investor confidence with strategic investments and economic policies that are working. Although our revenue growth is strong and outpaces the State and the Nation, we will continue our long term financial management and reduce volatility to weather the challenges of a potential economic downturn.”

Last week, Fitch upgraded its credit rating to AA+ from AA on the City’s general obligation bonds and upgraded its rating to AA from AA- on the City’s lease revenue bonds and Certificates of Participation (COPs). Moody’s and S&P affirmed the City’s Aa1/AA+ credit rating, respectively, on the City’s general obligation bonds and rated Aa3/AA, respectively, the City’s lease revenue bonds and COPs. The lease revenue bonds and COPs ratings are one or two levels below the City’s general obligation bonds ratings, a normal relationship between general obligation bonds and general fund-secured lease obligations. Moody’s, S&P and Fitch maintained rating outlook of stable.

According to Fitch, the upgrade “reflects the City’s fiscally prudent institutionalized financial policies which, along with several years of strong economic and revenue growth, have resulted in robust rainy day and budgetary reserves. These policies are expected to result in maintenance of solid financial flexibility through the economic cycle.” The three rating reports also cite: the San Francisco’s very strong liquidity; large, diverse and exceptionally strong economic base; very strong financial management and policies; and strong financial operations.
The City expects to sell the Bonds on January 20, 2016 and expects to close on or about February 2, 2016.