San Francisco Loses AAA Rating From Moody’s on Tech Exodus (1)

San Francisco lost its top-tier credit rating from Moody’s Ratings, which cited a weaker economy and depressed commercial real estate in the technology hub after the pandemic drove out workers.

The ratings company dropped its rating one notch on the city and county to Aa1 from Aaa. Both S&P Global Ratings and Fitch Ratings still maintain AAA grades.

“The sea change in office employment to a hybrid work model and reduction in commuting to the city’s office core have led to reduced economic activity, very high vacancy rates, and depressed rents,” analysts from Moody’s said in a statement.

Aerial photograph taken above San Francisco, California, U.S., on Monday, Oct. 5, 2015.

Photographer: David Paul Morris/Bloomberg