Standard & Poor's said Monday it revised its outlook on San Francisco's general obligation bonds and certificates of participation to stable from negative on an improved budget and reserves.

The rating firm upheld its AA rating on the city's GO bonds and its AA-minus rating on its lease-revenue bonds.

Standard & Poor's said the city's rating is a combined result of its economic role in the region, its improved general fund performance, strong reserves, strong financial management and moderate debt burden.

 "The outlook revision reflects our view of the improvement in the city's general fund reserve to a level we consider strong," S&P's analyst Misty Newland said in a statement, "and the city's history of balancing the current-year budget sufficient to maintain its general reserve required by board policy despite recurring budget deficits."

The move comes just ahead of San Francisco's sale of $35.5 million of COPs, which will be used to retire commercial paper COPs used to finance upgrades to the city's convention center.

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