SAN FRANCISCO (Standard&Poor's) May 19, 2004--Standard&Poor's Ratings Services affirmed the 'AA' rating and negative outlook on the City and County of San Francisco, Calif.'s outstanding GO bonds. The rating reflects San Francisco's large local economy, sustained property value growth, and a strained financial position due to a slowing economic environment. "The negative outlook reflects the prolonged economic downturn in the Bay Area, sizable projected deficits, and a decline in reserves," said Standard&Poor's credit analyst Markela Soward. "San Francisco is in its fourth fiscal year of grappling with substantial drawdowns in its general fund and is evaluating a number of sizable expenditure cuts for the coming years," she added. "Any future rating action will depend
