Standard & Poor’s raised Oakland’s general obligation bond rating to AA-minus from A-plus.

The agency also rated $120 million of Oakland Joint Powers Financing Authority revenue bonds A-plus. The Series 2008B refunding issue refunds the authority’s Series 2004A pension bonds, which were issued as auction-rate securities. The refunding deal includes $5 million to fund termination of a swap agreement the city entered into in 2004.

Oakland, California’s eighth-largest city, has a “consistent track record of strong financial performance,” said Standard & Poor’s analyst Gabe Petek in a release. Despite high debt levels, the city, located on the eastern shore of San Francisco Bay, “enjoys a diverse local economy and plentiful employment opportunities.”

The city’s GOs are rated A-plus by Fitch Ratings and A1 by Moody’s Investors Service.

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