Moody's Cuts LA Credit Rating, Warns of More Downgrades

Wednesday, 07 Apr 2010 02:36 PM

The Los Angeles City Council and employee unions are investigating whether Mayor Antonio Villaraigosa has the authority to shut down municipal services two days a week.

The city's financial crisis led Moody's Investors Service to downgrade the city's credit rating and warn that the city risks further downgrades.

Moody’s cut L.A.’s general-obligation bond debt rating to Aa3 from Aa2. That puts the city at the lower end of what Moody’s considers a “high qualityâ€