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 notes are secured by available taxes, income, revenues, and other unrestricted funds that the City of Los Angeles is to receive for the general fund by its fiscal year-end, June 30, 2024. The 2023 TRANs mature June 27, 2024. 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. 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.
