A major credit-rating agency has issued a gloomy outlook for the financial situation in Los Angeles.
Moody's Investors Service on Wednesday reduced its opinion of the city's finances from "stable" to "negative" because the city has delayed addressing its $212 million budget deficit.
The move could ultimately lead to a lower credit rating for Los Angeles and increase its cost for borrowing money.
A spokeswoman for Mayor Antonio Villaraigosa tells the Los Angeles Times that Moody's outlook adds credence to the mayor's call for cutting jobs, eliminating some city services and raising revenue by leasing out assets.
In November, LA's credit rating was downgraded by Fitch, which determined that the city failed to take adequate action to address the fiscal crisis.
Information from: Los Angeles Times, http://www.latimes.com
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