Standard&Poor's Ratings Services assigned its 'AA' rating to San Francisco City&County, Calif.'s series 2012A, 2012B, and 2012C 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. The outlook is negative. The rating reflects our view of the city's: Central role in the dynamic San Francisco Bay Area; 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; and Low debt burden. While the city's long-term economic prospects are positive, in our opinion,
