The rating on the bonds issued to build the San Diego Convention Center expansion were upgraded by Fitch IBCA from AA minus to AA last week.
The rating is just one level from the city’s general obligation bond rating of AA plus, the highest rating a city can receive. The criteria for increasing a bond upgrade includes the city’s fiscal management practices and financial flexibility, city officials said.
Besides increasing the value of the bonds to investors, the upgrade reflects the city’s overall credit quality and reputation in the municipal bond market, the city said.
The $205 million in bonds for the $216 million expansion were issued in 1998 at a record low interest rate of 5 percent. Debt service on the bonds comes from a combination of hotel taxes and annual payments from the San Diego Unified Port District.
