SAN DIEGO – The city of San Diego got more good news on the financial front Thursday with the announcement that the city has been upgraded from “negative” to “stable” by Moody's Investors Service, one of the nation's major credit-rating agencies.

That means the city is now three-for-three when it comes to the key upgrades, allowing it to borrow money more cheaply. Earlier, Standard and Poor's and Fitch Ratings had upgraded the city's standing as well.

The agencies had downgraded the city's ratings, making it impossible to issue bonds, after the city under-funded its pension fund and embarked on questionable borrowing deals, according to the federal government.

Subsequently, the city had to borrow money through banks, costing more.

The city plans to go back to the bond market, but it's uncertain just when, said Darren Pudgil, Mayor Jerry Sanders' spokesman.

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