|San Francisco City Hall (Photo/ People's Daily Online)|
San Francisco, Oct.9 -- Major bond rating agencies upgraded San Francisco’s credit rating for its strong economy and fiscal control.
San Francisco mayor Edwin M. Lee announced on October 9 that major bond rating agencies have upgraded and affirmed San Francisco’s strong credit. Standard & Poor’s (S&P) 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 (COP).
Moody’s and Fitch Ratings (Fitch)affirmed the City’s Aa1/AA credit rating, respectively, on the City’s general obligation bonds and rated Aa2/AA-, respectively, the City’s lease revenue bonds and COPs.
“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.”
Certificates of participation are a financial arrangement generally used when a municipality creates a bond issue. Rather than paying interest on the bonds the investor receives a return based on the lease revenues associated with the offering.
According to the statistics, the unemployment rate in San Francisco is 7.80% with job growth of 1.20%. Future job growth over the next ten years is predicted to be 34.60%. The income per capita is $43,328, which includes all adults and children and the median household income is $69,736.