Standard&Poor's Ratings Services revised its outlook to negative from stable and affirmed its 'AA' long-term rating and underlying rating (SPUR) on Los Angeles, Calif.'s solid waste resources (SWR) and sanitation equipment bonds. In addition, we assigned our 'AA' long-term rating to the city's $71.7 million series 2013A SWR revenue bonds and $80.7 million series 2013B solid waste resources refunding revenue bonds. The outlook revision reflects our view of the city's projected increase in operating costs and mostly debt-financed large capital improvement program (CIP). The CIP will require additional bond issuances in fiscal years 2016 and 2018, the combination of which will result in reduced liquidity and debt service coverage (DSC) on a net revenue basis, possibly to less
