Fitch Ratings, one of the “big three” rating agencies on Wall Street, has upgraded the City of San Diego’s credit rating, citing a “healthy economy.”
Fitch upgraded the city’s issuer rating from AA- to AA and upgraded the general fund-backed lease revenue bonds from A+ to AA-, with a stable outlook for all ratings.
According to Fitch, this reflects the city’s “strong general fund revenue performance, solid expenditure flexibility, healthy economy and tax base, conservative financial management policies, and strong financial planning and disclosure practices.”
The change could lead to lower borrowing costs for major infrastructure projects.
“This credit upgrade is a validation of the city’s responsible financial practices and further proof that San Diego’s economy is strong and growing,” said Mayor Kevin Faulconer. “It’s a testament to our staff’s tireless commitment to fiscal discipline and ability to manage our finances no matter what comes our way.”
“I look forward to working with the City Council to maintain our long-term budgetary health and keep the city on a stable financial footing,” he added.