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Stock impact report

S&P lowers city of L.A.'s bond ratings amid budget crisis [Yahoo! Finance]

S&P Global Inc. (SPGI) 
Last s&p global inc. earnings: 4/28 07:10 am Check Earnings Report
US:NYSE Investor Relations: stocktwits.com/symbol/s
Company Research Source: Yahoo! Finance
On Friday, the credit rating agency downgraded its long-term rating for the city's general obligation bonds to AA- from AA. It also lowered the rating for the Municipal Improvement Corp. of Los Angeles' lease revenue bonds, which are used to purchase city equipment such as fire trucks, to A+ from AA-. "The downgrade reflects the city's weakening financial position and an emerging structural imbalance," S&P Global Ratings wrote in announcing the changes. S&P said it was concerned about the rapid deterioration of the city's reserve fund, which is supposed to remain at 5% or more of the general fund. To close a gap in the 2024-25 budget, city officials drew on the reserve fund, which fell to 3.22% of the general fund S&P said the bond ratings could decrease further if the city does not quickly make adjustments to the management of its budget. The bond rating downgrades came days after Mayor Karen Bass outlined the city's stark economic situation in her proposed budget for 20 Show less Read more
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