Standard&Poor's Ratings Services assigned its 'AA-' long-term rating to San Francisco City&County, Calif.'s series 2012A (equipment program) lease revenue bonds. The outlook is negative. The rating reflects our view of: The city and county's covenant to budget and appropriate lease payments; The city and county's general creditworthiness; and The appropriation risk associated with appropriation-backed obligations. The lease revenue bonds are limited obligations of the corporation payable from base rental payments made by the city-county (as lessee) to the corporation (as lessor), under a lease-lease back structure, for the use of the city-county's various equipment to be purchased by the bonds. In addition, the city-county covenants to budget and appropriate annual base rental payments. Under the assignment
