S&P puts San Francisco on negative outlook, cites slow recovery

(The Center Square) – S&P Global Ratings changed its outlook for San Francisco’s outstanding bonds from stable to negative, citing the slow recovery in the city and county. 

S&P Global Ratings, one of the Big Three credit-rating agencies, revised its outlook to negative from stable on the San Francisco City and County outstanding general obligation debt.

“The negative outlook reflects our view of the slow recovery of the city’s major revenue streams and growing budgetary expenditures that will likely lead to continued general fund shortfalls and draws on existing reserves if management doesn’t make substantive budgetary corrections in the near term,” the S&P Global Ratings report stated.

Despite the city’s strong reserves, S&P remains concerned about the city’s ability to correct course. 

“The city forecasts consecutive deficits in the coming years that could, in the absence of corrective action or a materially stronger revenue recovery, substantially drain its reserves with evidence of an
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