Moody's raises rating on City of Los Angeles GO debt one notch
SAN FRANCISCO Jan 23 (Reuters) - Moody's Investors Service said on Wednesday it upgraded Los Angeles' general obligation bonds one notch to Aa2 and affirmed its ratings on the city's unsecured, general fund-backed obligations in a move affecting about $3.3 billion of outstanding debt.
Moody's, which had placed the city's general obligation bond rating on review for upgrade in October, said in a report that its upgrade reflects a change in its estimate of the likelihood of default on GO debt relative to obligations paid from the city's general resources.
Moody's also said the upgrade reflects specific factors related to the city's tax base and GO bond structure. "Despite the last few years' extreme housing market volatility, the assessed valuation of Los Angeles' property tax base has proven quite stable and is now on an upward track," the rating agency said.