The revision of the Rating Outlook to Negative reflects San Francisco’s persistently large budgetary gaps, which the city is closing primarily through the use of various non-recurring resources, including pandemic aid, fund balance, and other one-time sources. This is reflected in a -1 notch additional analytical factor (AAF), which reduces the headroom at the current ‘AAA’ rating. The stability of the ‘AAA’ rating is predicated on the city making demonstrable progress in closing the budget gap.
Thu 09 Jan, 2025