LA Mayor Tells Council to Cut Budget to Protect Credit Rating

The mayor’s two-hour appearance before the council came after analysts from Fitch Ratings and Moody’s Investors Service both contacted the office of city administrative officer Miguel Santana on Feb. 8, according to a memo Santana sent to the mayor and the city council that day.

Fitch told the city that it may face a downgrade of its bonds if it fails to control its deficit, cut jobs and limit drawdowns of cash reserves, according to the memo from the city’s top budget official that was confirmed by the mayor’s office.

“The mayor received the memo from the city administrative officer,” said Sarah Hamilton, a mayoral spokeswoman. He went before the City Council and “discussed this and outlined his concern that if we do not act swiftly and decisively to balance this budget, we will face negative consequences from rating agencies.”