Los Angeles Downgraded to AA- by S&P Due to Budget Woes
Los Angeles faces significant costs tied to January’s deadly wildfires.
Photographer: Kyle Grillot/BloombergLos Angeles had its credit rating downgraded one level to AA- by S&P Global Ratings, which cited the city’s deteriorating finances and budget woes for the move.
S&P, which had previously warned of a potential cut, assigned the grade a negative outlook, suggesting a one-in-three chance that the city’s credit rating could be lowered further over the next two years, especially if officials are unable to make structural budget adjustments.