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San Francisco Chronical

San Francisco earns its first triple-A credit rating in about 40 years

n theory, a higher credit rating lowers the interest rate a city must pay on its debt, the same way a higher FICO score will usually get you a cheaper mortgage.

However, with interest rates so low, the difference between being rated Aa1 and Aaa is very small, said bond analyst Matt Fabian, a partner with Municipal Market Analytics.

“San Francisco’s bonds are already received as if they’re AAA or almost AAA, so the actual upgrade, in dollar terms, won’t have a material impact on borrowing costs,” Fabian said in an email. “This is better seen as a political shot in the arm for the mayor.”

Tim Holler