A bit behind the curve there S&P.
From the San Francisco Chronicle, April 22:
San Francisco’s post-pandemic downturn threatens city’s historically strong credit rating
Weakness in San Francisco’s commercial real estate market and the slow-moving recovery of economic drivers such as tourism stand to jeopardize the city’s ability to repay its debt, according to S&P Global Ratings.
The financial services firm this week downgraded its outlook on the city’s outstanding general obligation and appropriation debt from “stable” to “negative.” The move comes as office vacancy in San Francisco hit a record 36.6% in the first quarter of the year, exacerbating the city’s fiscal challenges in the wake of the pandemic.
San Francisco is projected to face a $245 million budget deficit in the coming fiscal year and a $555 million deficit in the following year. The shortfall could balloon to more than $1 billion by 2027 if expenditures continue to outpace revenue growth.
S&P said in a release that it believes that San Francisco’s “management will be challenged to make the cuts needed to restore it to budgetary balance during the outlook horizon, which could lead to rating pressure if the city’s general fund reserves decline precipitously.”....
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Also at the Chronicle:
Empty S.F. office tower formerly valued at $62 million sold for $6.5 million
