SAN FRANCISCO Jan 23 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