Los Angeles downgraded, drops Standard & Poor's

[Bad_Daddy 2,209]

http://finance.yahoo.com/news/Los-Angeles-downgraded-drops-apf-1282880481.html

Los Angeles downgraded, drops Standard & Poor's

Los Angeles drops Standard & Poor's credit rating firm after city investments downgraded to AA

On Thursday August 18, 2011, 9:44 am EDT

LOS ANGELES (AP) -- The city of Los Angeles will no longer hire Standard & Poor's to rate its $7 billion general investment pool because the firm recently downgraded the city's portfolio from AAA to AA.

Interim Treasurer Steve Ongele says the city has lost faith in S&P's judgment.

The Los Angeles Times reports Ongele told the City Council's Budget and Finance Committee this week that the city should be proud for cutting ties with S&P.

He notes the market crash that came with the real estate debacle occurred because rating agencies like S&P gave unworthy corporations AAA ratings.

Ongele says canceling the contract will save the city $16,000 a year.

[Gary and Alla 3,694]

Maybe if Obama dropped them for the US they would go out of business and it wouldn't count.

[Obama 2012 1,714]

let's be realistic here.

You can pay all your bills on time, never default, etc.

However if your income to debt ratio goes up, then your credit score drops.

Why should it be any different for government?

[Bad_Daddy 2,209]

The part of that article that gets me is that illegals cost LA millions of dollars every year, and that guy is bragging how he saved LA $16,000 a year by dropping S & P.

[Ban Hammer 13,493]

The part of that article that gets me is that illegals cost LA millions of dollars every year, and that guy is bragging how he saved LA $16,000 a year by dropping S & P.

[luckytxn 2,265]

The possible investors would be more interested if L.A. worked on getting that AAA back.