SFUSD Earns Improved Bond Ratings

San Francisco (August 25, 2026) — San Francisco Unified School District (SFUSD) is pleased to share positive updates in the district’s general obligation bond rating by credit rating agencies that publish financial research and analysis on stocks, bonds, and commodities. Both S&P Global Ratings (“S&P”) and Moody’s Ratings (“Moody’s”) have revised the district’s Bond rating outlook to reflect improvements in SFUSD’s fiscal management and operations.  

Moody’s revised SFUSD’s general obligation bond rating outlook from stable to positive, and affirmed its A1 issuer and A2 debt ratings. S&P revised SFUSD’s outlook from negative to stable. 

Both agencies review the district’s complete financial picture when assigning bond ratings, and these positive changes reflect the financial and operational stability that SFUSD has made over the past two years. 

According to Moody’s, “The positive outlook reflects our expectation that the district will maintain a solid financial position largely due to management’s recent fiscal operational improvements and commitment to maintaining reserves closer to 10%.”

S&P shared, “This reflects our view that the district has successfully resolved its structural imbalance. We believe the implementation of the new statewide financial system, alongside recent improvements in management policies and procedures, will mitigate the risk of future material audit findings and support stable operations.” 

On November 5, 2024, San Francisco voters approved Proposition A, a $790 million General Obligation bond measure for critical facilities improvements to SFUSD schools. SFUSD sold the first series of bond funds (Series A) of $160 million in April 2025. A $270 million Series B sale is scheduled for August 25, 2026. The money is being used to modernize deteriorated classrooms and learning spaces, replace outdated electrical, plumbing and heating systems, improve energy efficiency, provide access to students with disabilities, upgrade kitchens and cafeterias, and enhance security and safety features. 

“We have actively engaged with the ratings agencies to share key updates regarding the district’s budget balancing solutions and appreciate their diligence in reviewing the district’s focus on responsible fiscal management,” said Superintendent Maria Su. “These ratings upgrades communicate to investors - and the public - that our district, including our bond program, is getting stronger.”

SFUSD’s Bond Program is committed to responsible stewardship of taxpayer dollars. This commitment includes transparency in how funds are spent, which is shared on its website and in quarterly reports, as well as efforts to improve financing, minimize interest payments, and ensure funds are directed towards the most urgent and impactful facilities needs. 

More information:
SFUSD Bond Program

Bond Buyer “San Francisco schools gain two positive outlooks,” August 12, 2026

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