Credit rating agency warns it may soon lower Los Angeles bond ratings due to fires

(The Center Square) — Credit rating agency S&P placed a credit watch warning on Los Angeles’s general obligation and municipal improvement lease revenue bonds, signaling at least a one-in-two chance that the agency could “take a negative rating action during the next 90 days.” 

L.A.s general obligation bonds are currently rated at AA, while its municipal improvement corporation leave revenue bonds are rated AA-. A reduction in credit ratings would make borrowing more expensive to reflect higher risk.

“The CreditWatch placement reflects our view of the city’s weakening financial trends and the introduction of additional credit risk tied to the multiple wildfires that began on Jan. 7, 2025,” said S&P Global Ratings credit analyst Amahad Brown in a statement. “We believe that the fires and

Continue reading