Community Corner
South San Francisco Awarded AAA Credit Rating
S&P awarded the City of South San Francisco a triple-A, the highest possible rating.
SOUTH SAN FRANCISCO, CA — S&P Global Ratings, a Standard & Poor's Financial Services LLC ("S&P") has assigned an issuer credit rating of triple-A ("AAA") to the City of South San Francisco ("City"). AAA is the highest rating possible and is important as higher ratings generally results in lower borrowing costs. This AAA ratings announcement follows S&P's recent action awarding a double-A plus ("AA+") on the highly anticipated sale of Lease Revenue Bonds, Series 2020A ("Series 2020A Bonds") for the City's new Police Operations & 911 Dispatch Center via the City of South San Francisco Public Facilities Financing Authority.
"This is fantastic news for the City, and the first time in our City's history we have achieved a AAA bond rating," said South San Francisco Mayor Rich Garbarino. "To reach the highest possible rating shows the level of fiscal responsibility our City has, with excellent financial policies and practices. I commend our City's financial team and City Manager for achieving this rating."
In a release announcing the rating, S&P noted the City's strong financial position, bolstered by the local economic growth and development momentum. The solid executive management, fiscally sound policies and practices, and sound budgetary performance were also recognized.
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With the coveted AAA, the City joins an elite group of municipalities in California that have received the highest credit rating from S&P.
"AAA financial ratings are often sought, but rarely achieved," said City Manager Mike Futrell," and reflects the great financial stewardship of public funds exercised by our City Council, and the excellent financial management practices at work with city staff. This AAA rating is the best indicator of the state of the City's financial affairs, and clearly the state of the City is strong."
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The City is expecting to price the estimated $45 million Series 2020A Bonds on Thursday, February 27, with the proceeds of the sale available on Wednesday, March 11. The bond proceeds will fund a new Police Operations & 911 Dispatch Center, which represents Phase I of the City's new Community Civic Campus.
The City is breaking ground on its police station on Friday, February 28, 2020.
This press release was produced by the City of South San Francisco. The views expressed here are the author’s own.