Moody's Investors Service said it has upgraded to A2 from A3 the city of South San Francisco, Calif.'s conference center tax revenue bonds, affecting $2.5 million in rated debt outstanding.
The bonds are secured by a citywide $2.50 per room, per night transient occupancy tax levied and collected by the city.
The upgrade to A2 from A3 reflects the city's resilient taxable hotel base that has maintained above average occupancy rates through the economic downturn, where occupancy rates outpaced industry growth projections.
The A2 rating also considers the city's favorable location between the San Francisco International Airport (SFO) and the city of San Francisco that contributes to strength of the otherwise narrow hotel tax security.
