From Zero Hedge comes new that L.A. is worth less than usual:
Moody’s Investors Service has downgraded to Aa3, from Aa2, our rating on the City of Los Angeles’ general obligation bonds. At this time we have also downgraded each of our ratings on the city’s general fund obligations by one notch, resulting in ratings ranging from A1 to A3 depending on the specific security pledge. The downgrade primarily reflects the continued erosion of the city’s historically better-than-average willingness and ability to quickly rebalance its budget mid-year. This is a particularly important rating factor for Los Angeles since its balance sheet has typically been relatively weak for the rating level. The downgrade also partly reflects the likelihood that the city’s general fund reserves at the end of the current fiscal year could be materially weaker than we had previously expected, now that an expected transfer from the Department of Water & Power may be reduced.