S&P Global Ratings believes there is at least a one-in-two chance that Oakland's general obligation bonds could receive a lower rating, 'potentially by multiple notches' in the next three months.
S&P's new report suggests this could change because of 'material and rapid deterioration in the city's financial position, largely driven by overspending, as well as what we view as potential governance weaknesses that could complicate financial decision-making under challenging circumstances.'
Oakland is currently projected to end the fiscal year 2024-2025 with a $115 million hole in the general purpose fund, partly driven by the city's police and fire departments, which are projected to overspend their budgets by tens of millions this year.
An external financial advisor warned the city's Finance Department earlier this year that problems with the sale could also affect the city's access to the bond market.
Collection
[
|
...
]