S&P SLASHES San Francisco Debt Outlook to "NEGATIVE": Is the Doom Loop INESCAPABLE?

Standard & Poor's has downgraded its outlook on San Francisco's debt from stable to negative, signaling potential financial distress for the city. This change reflects ongoing challenges in San Francisco's commercial real estate market, where vacancies have soared to approximately 40%. The decline in office occupancy, driven by the shift to remote work and the city's high cost of living, has severely impacted San Francisco's economic recovery post-pandemic. This situation poses a significant risk to the city's budget, with fiscal projections indicating a looming deficit potentially exceeding $1 billion by 2027. Such economic indicators suggest that without significant adjustments, San Francisco may struggle to maintain its financial health, affecting its ability to manage debt without resorting to higher borrowing costs.Show more

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