S&P Global Ratings said it raised its long-term rating on the city of Los Angeles, Calif.'s outstanding general obligation bonds to AA from AA-minus and raised its rating to AA-minus from A-plus on the city's outstanding lease revenue and judgment obligation bonds.
At the same time, S&P assigned its AA rating to the city's series 2017A and 2017B GO bonds. The outlook on all ratings is stable.
"The raised rating reflects the strong underlying economy that has recovered from recessionary lows, and management's continued ability to take the necessary actions to maintain budgetary balance and sound reserves," said S&P credit analyst Jenny Poree. "The outlook further reflects our expectation that the Los Angeles Department of Water and Power -- or LADWP -- settlement will be validated by a judge and will improve revenue certainty."