Moody’s Investors Service on Wednesday reaffirmed its MIG-1 rating on Los Angeles County’s fiscal 2009-2010 tax and revenue anticipation notes, despite threatened state budget cuts that led Standard & Poor’s to downgrade the county earlier in the week.

Standard & Poor’s cut the biggest U.S. county’s short-term credit rating to SP-1 from SP-1-plus after Gov. Arnold Schwarzenegger proposed closing a $24 billion budget deficit in part by borrowing local government tax revenues and by reducing spending for social services delivered by counties. Los Angeles County projected that the state budget crisis could cost it $417 million under the governor’s proposal.

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