...June 16, 2023 DALLAS (S&P Global Ratings) June 16, 2023--S&P Global Ratings assigned its 'SP-1+' short-term rating to the City of Los Angeles' $1.491 billion 2023 tax and revenue anticipation notes (TRANs). "The rating reflects our view of Los Angeles' historical use of conservative cash flow assumptions, leading to modest variances relative to very strong projected coverage of principal and interest," said S&P Global Ratings credit Amahad Brown. The city's current projections for fiscal 2024 cash flows indicate that revenues are expected to outpace disbursements for the year, supporting the city's maintenance of structural budget balance. The current projections include a 6% growth rate assumption for salaries; however, we understand that the city has also identified several options to address potential further cost escalations tied to expiring labor union contracts including budget savings from employee vacancies or deploying reappopriated reserves from 2022-2023. In addition, we note...
