Feb 5 (Reuters) – Moody’s Investors Service on Tuesday raised the City and County of San Francisco, California’s general obligation bond rating to Aa1 from Aa2 with a stable outlook.
The upgrade, which affects about $2.2 billion of debt, “recognizes the quality of the city’s tax base and economy, which have exhibited notable strengths through the recession and are solidly accelerating from the downturn,” Moody’s said in a statement.
The upgrade also reflects Moody’s “changed view of the likelihood of default on a California local government’s GO bond relative to obligations secured by its general resources,” the rating agency said. “This new view has generally resulted in a widening of our rating distinction between GO ratings and lease-backed obligation ratings,” Moody’s said.
Read more: Reuters – Moody’s raises San Francisco, California to Aa1