A New York bond-rating agency today gave Los Angeles good reviews for the way it is managing its finances.
The Kroll Agency said in a statement that it is assigning a long-term rating of AA with a stable outlook to the general obligation debt of the city of Los Angeles — a rating that applies to all of the city’s outstanding general obligation bonds. The city has $991 million of general obligation bonds outstanding.
Kroll said it “views the city’s organizational structure and financial management policies and procedures as providing a strong framework for managing the city’s financial operations. The financial condition of Los Angeles is strong based on its management of its General Fund budget, increased levels of reserves and its strong liquidity over the last several years.
“KBRA considers the City’s improved finances from FY 2009 through FY 2013 to be largely the result of the City’s pro-active budgeting and strict fiscal monitoring practices,” the statement said, adding that the city’s reserve levels have increased since 2010.
“KBRA views the city’s overall liquidity levels to be strong. … KBRA also views the economic base of the city of Los Angeles as strong and diversified.”
The agency said it expects L.A. to “continue to manage its structural deficit and increase the levels of operating reserves and unassigned fund balances.”
