SAN FRANCISCO -Moody's Investors Service Monday upgraded San Francisco's general obligation credit to Aa2 from Aa3 as the city prepares to sell $43 million of GOs for its parks system.

"The upgrade primarily reflects the decade-long, and likely continuing, steady upward trend in the city's assessed valuation; the relative mildness of the current economic downturn, which demonstrates the city's fundamental economic strength and resilience; and the city's now-improved prospects for reduced fiscal volatility," Moody's analyst Eric Hoffmann said in a report. The upgrade affects $1.9 billion of outstanding debt.

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