SAN FRANCISCO —  Moody’s Investors Service Wednesday downgraded San Francisco’s general obligation rating to Aa2 from Aa1, mainly due to the city’s weak short-term finances.

“The downgrade primarily reflects the city’s very narrow financial position and the minimal prospect of material improvement in the near term,” Moody’s said in a statement. “The city ended fiscal 2009 with a balance sheet that was weaker than at any time in the prior 10 years.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.