California City With $800,000 Manager Gets Rating Cut by Fitch

Bell, the Los Angeles suburb that paid its city manager almost $800,000 a year, had its credit cut to junk grade by Fitch Ratings on concern the city may default on debt and had improperly raises taxes to pay off bonds.

Fitch said it lowered the rating on $50 million of general obligation bonds seven steps to BB, or junk, from A+, and to BB-from A+ on $7.5 million of pension bonds sold in 2005. Standard & Poor’s took similar actions Aug. 10.