April 15, 2011 > Bond downgrade could increase SF's borrowing costs
Bond downgrade could increase SF's borrowing costs
Submitted By AP Wire Service
SAN FRANCISCO (AP), Apr 13 - Borrowing money for construction projects could cost San Francisco more after a major rating agency downgraded $2.6 billion in city bonds.
Fitch Ratings issued its decision on Tuesday, saying the city had shrinking reserves and had used short-term fixes to balance its budget in recent years.
City Public Works Chief Ed Reiskin tells the San Francisco Chronicle that the costs of borrowing hundreds of millions of dollars the city needs for construction projects, including rebuilding San Francisco General Hospital, will be higher.
But City Controller Ben Rosenfield says other factors may temper the downgrade by Fitch. They include ratings by the other major agencies, Moody's Investors Service and Standard & Poor's.
Those agencies are expected to announce their ratings in the next several weeks.
Information from: San Francisco Chronicle, http://www.sfgate.com/chronicle