SAN DIEGO - On May 31, the City’s $93.2 million in 2002-03 Tax Anticipation Notes received the highest short-term ratings from all three agencies that rate the City’s credit.

The City issues the short-term tax anticipation notes annually to fund seasonal cash flow deficits secured by a pledge of unrestricted fiscal year 2003 operating revenues. Fitch Ratings gave the City an F1+, Moody’s Investors Service rated the City MIG1, and Standard & Poor’s provided San Diego with a SP1+ rating.

"These new ratings are continued evidence of the City’s sound and conservative financial management," said City Treasurer Mary Vattimo. The three agencies based their ratings on the strong coverage provided by the projected pledged revenues, the City’s history of conservative cash flow projections, and the City’s strong credit quality, as reflected in its high general obligation bond rating.

The high ratings follow closely an announcement several days before that Fitch Ratings raised the City’s general obligation bond rating to AAA, the highest possible rating. San Diego is now the only large California city with an AAA rating. As of May 30, 2002, the ratings for general obligation bonds are Fitch, AAA; Moody’s, Aa1; and Standard & Poor’s, AA.

The City was also recently named the "Most Efficiently Run Big City in California" by the Reason Policy Institute and the "Best City in America for Business and Careers" by a Forbes Magazine/Milken Institute study.