S&P Global Ratings assigned its 'AA+' long-term rating to the city and county of San Francisco, Calif.'s anticipated $38 million general obligation (GO) bonds, series 2025E. The outlook is negative. Revenue from unlimited ad valorem taxes levied on all taxable property within the city, without limitation as to rate or amount, secures the new and outstanding GO bonds. Bond proceeds for the series 2025E GO bonds will be used to fund the city's affordable housing projects. The 'AA+' rating reflects the increasingly challenging revenue environment facing the city and county (hereinafter, "the city") and our expectation that the city will struggle to close a $875.9 million (6% of two-year general fund revenues) two-year budget gap that continues to widen. Deteriorating
