Los Angeles GO Bond Rating Raised to 'AA', Due To Resolution Of LADWP Litigation, Robust Economy, And Strong Management

SAN FRANCISCO (S&P Global Ratings) June 9, 2017--S&P Global Ratings raised its long-term rating on the city of Los Angeles, Calif.'s outstanding general obligation (GO) bonds to 'AA' from 'AA-' and raised its rating to 'AA-' from 'A+' on the city's outstanding lease revenue and judgment obligation bonds. At the same time, S&P Global Ratings assigned its 'AA' rating to the city's series 2017A and 2017B GO bonds. The outlook on all ratings is stable. "The raised rating reflects the strong underlying economy that has recovered from recessionary lows, and management's continued ability to take the necessary actions to maintain budgetary balance and sound reserves," said S&P Global Ratings credit analyst Jenny Poree. "The outlook further reflects our expectation that

...SAN FRANCISCO (S&P Global Ratings) June 9, 2017--S&P Global Ratings raised its long-term rating on the city of Los Angeles, Calif.'s outstanding general obligation (GO) bonds to '##' from '##-' and raised its rating to '##-' from 'A+' on the city's outstanding lease revenue and judgment obligation bonds. At the same time, S&P Global Ratings assigned its '##' rating to the city's series 2017A and 2017B GO bonds. The outlook on all ratings is stable. "The raised rating reflects the strong underlying economy that has recovered from recessionary lows, and management's continued ability to take the necessary actions to maintain budgetary balance and sound reserves," said S&P Global Ratings credit analyst Jenny Poree. "The outlook further reflects our expectation that the Los Angeles Department of Water and Power--or LADWP--settlement will be validated by a judge and will improve revenue certainty," Ms. Poree added. The 2017A (taxable) GO bonds will be used for the permanent supportive housing...

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