...The revision of the Rating Outlook to Stable reflects Fitch Ratings' view that the city of San Francisco will effectively manage spending and maintain a high level of fundamental financial flexibility while revenues continue to recover from pandemic-fueled declines. The city expects to reduce its reliance on one-time budget solutions over the medium term while maintaining very strong fiscal reserves. Risks in the recovery remain, largely driven by changes in work and travel policies, but are largely offset in Fitch's view by the magnitude of available reserves, which will allow the city to gradually restore its operating budget to structural balance. The 'AA+' Issuer Default Rating (IDR) and GO bond rating reflect the city's exceptionally strong reserve position relative to Fitch's near-term expectations for weak economic and revenue performance. Fitch expects the city's revenues to return to pre-pandemic levels, albeit over several years. The city benefits from solid spending flexibility...
