Bloomberg reports that Moody’s downgraded San Fran’s credit rating to Aa1 from Aaa. This might trigger an avalanche of other downgrades from credit rating agencies in the weeks and or months ahead. Both S&P Global Ratings and Fitch Ratings maintain AAA grades as of Wednseday.
Analysts at Moody’s explained their decision for the downgrade:
“The sea change in office employment to a hybrid work model and reduction in commuting to the city’s office core have led to reduced economic activity, very high vacancy rates, and depressed rents.”
The credit rating downgrade is just the latest challenge facing Mayor London Breed, who recently had to close a $789 million deficit in a new two-year budget cycle. This downgrade will only make it more expensive for the city, plagued with violent crime and chaos because of failed progressive policies, to borrow in the municipal bond market.
This is the fentanyl bazaar in San Francisco where addicts get it cheap and the city does nothing to stop it, they actually encourage it by handing out paraphernalia to make it easier for addicts to use their newly acquired narcoticspic.twitter.com/z5U68FSfX1
— Paul A. Szypula 🇺🇸 (@Bubblebathgirl) September 12, 2024
A 2022 report from the city’s top economist forecasted that persistently low office occupancy could cause the city to lose $200 million in property tax revenue by 2028. […]
— Read More: www.zerohedge.com
