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Once the fancy of so many national publications, the city of San Diego’s pension problems have gradually gone off the media radar since the scandal hit full-tilt near the middle years of this decade.
But now they’re back. Reuters has this article from last week forecasting what troubles the global economic crisis has wrought on the pension system’s investments.
The story touched on many of the same themes detailed by my colleague David Washburn in his article Thursday.
Reuters added this bit of context from a ratings agency official. The rating agencies will play a key role in determining the city’s credit rating and, therefore, how much it will cost it to borrow money when it returns to Wall Street after its four-year banishment:
Fitch Ratings managing director Amy Doppelt said San Diego has been “very responsible” with its financial disclosures during its long effort to regain its standing in the municipal debt market. She added that it is too soon to say what the city will disclose in the way of losses at its pension fund.
“San Diego is being watched very closely because of what happened in the past,” she said. “Increased pension plan payments should be on the muni bond radar screen, but it’s too early in the disruption to be able to quantify how much it will cost.”