San Diego’s Credit Rating Restored After 4-year Suspension
Thursday, May 15, 2008
(Photo: Mayor Jerry Sanders speaks during a news conference to announce San Diego's restored credit rating. Alison St John/KPBS)
Standard and Poor's Rating Agency has restored San Diego's credit rating, opening the door for the city to borrow on the public bond markets. The move will save the city millions of dollars. KPBS reporter Alison St John has more.
Standing in the sunshine with the city's downtown skyline as his backdrop, Sanders announced the news he's been working towards ever since he took office.
Sanders: Today is the most significant day for our city in the last four years. Earlier this morning, Standard and Poor's announced it had restored the city's credit rating announcing an A rating and changed its outlook to positive for the city as well.
The move marks the end of a chapter in San Diego's history that began when the scandal first broke that the city had hidden its billion dollar pension deficit from investors.
The SEC began investigating and investors stopped investing. A restored credit rating means the city can take advantage of low interest rates to refinance $200 million in bonds. It'll also allow the city to sell hundreds of millions more bonds to finance desperately needed water and wastewater upgrades.
Alison St John, KPBS News.