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S&P upgrades Los Angeles' credit outlook

 

Photo Credit: Getty

LOS ANGELES (CNS) - A top credit rating agency has bumped up Los  Angeles' general bonds outlook from a ranking of ``stable'' to ``positive,''  which should allow the city to borrow money at lower cost, Mayor Eric Garcetti  announced today.

Standard & Poor's also reaffirmed the city's ``AA-'' long-term rating  and underlying rating, as well as its `A+'' rating for appropriation-backed  debt.

The city's Municipal Improvement Corporation of Los Angeles series 2014- A and 2014-B lease revenue bonds received an ``A+'' rating.

The agency's revision of the city's bonds outlook is recognition of the  city's ``prudent budgeting,'' which included ``increasing our reserves to the  highest level in the city's history,'' Garcetti said.

The city's reserves are now equivalent to 8.8 percent of expenditures,  according to the mayor's office.

``Our commitment to fiscal discipline and reform is about saving  taxpayer dollars to expand services for our residents,'' Garcetti said.

Standard & Poor's credit analyst Jen Hansen said the agency changed Los  Angeles' outlook rating to reflect its improved economic conditions,  ``including unemployment, which is below 10 percent and continues to fall, and  the city's improving financial position, as demonstrated by a large surplus in  fiscal 2013."

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