Standard&Poor's Ratings Services assigned its 'AA' rating to San Francisco City&County, Calif.'s series 2012D and 2012E general obligation (GO) bonds. At the same time, Standard&Poor's affirmed its 'AA' long-term rating and underlying rating (SPUR) on the city's GO bonds outstanding and its 'AA-' rating and SPUR on the city's lease revenue bonds. The outlook is negative. The ratings reflect our view of the city's: Recurring budget deficits and a history of balancing the current-year budget sufficient to maintain its general reserve required by board policy; Strong financial management policies, including regular budget monitoring and expanded forecasting to five years from three; Moderate debt burden; and Central role in the dynamic San Francisco Bay Area.
