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Sanders Claims City Can Return to Bond Market. Oh? That Will Be Up to Investors. Bond Rating Agencies Suffer from Bad Reputation

Mayor Jerry Sanders today (May 15) exulted, "This is the most significant day in the City of San Diego in the past four years. The City once again has access to the bond market." Sorry, Jerry. Investors will decide that. The mayor's statement is just more hyperbole. Standard & Poor's once again gave San Diego general obligation bonds a rating -- a tepid A rating. S&P has only four investment grade ratings: AAA, AA, A, and BBB. The A rating is third of those four categories. Many more cities have AA ratings. Bond rating agencies have the worst reputation they have ever had. They gave AAA ratings to portfolios full of doggy mortgages. People are beginning to understand that the rating agencies are paid by the institutions they rate -- a very obvious conflict of interest that the financial community hasn't tackled. The timing of this event before the election is suspicious. S&P's rating may do little, particularly since the 2007 audit hasn't been finished. S&P's claim that San Diego has improved its financial practices does not jibe with statements of auditors and former City financial employees. If local media do not report Friday on rating agencies' poor reputation, you will know that they willingly swallowed a pre-election ploy.

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Mayor Jerry Sanders today (May 15) exulted, "This is the most significant day in the City of San Diego in the past four years. The City once again has access to the bond market." Sorry, Jerry. Investors will decide that. The mayor's statement is just more hyperbole. Standard & Poor's once again gave San Diego general obligation bonds a rating -- a tepid A rating. S&P has only four investment grade ratings: AAA, AA, A, and BBB. The A rating is third of those four categories. Many more cities have AA ratings. Bond rating agencies have the worst reputation they have ever had. They gave AAA ratings to portfolios full of doggy mortgages. People are beginning to understand that the rating agencies are paid by the institutions they rate -- a very obvious conflict of interest that the financial community hasn't tackled. The timing of this event before the election is suspicious. S&P's rating may do little, particularly since the 2007 audit hasn't been finished. S&P's claim that San Diego has improved its financial practices does not jibe with statements of auditors and former City financial employees. If local media do not report Friday on rating agencies' poor reputation, you will know that they willingly swallowed a pre-election ploy.

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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