More bad news on the city budget, as City Administrative Officer Miguel Santana told the council today that Standard & Poor's has downgraded the city's credit rating.
The move follows a warning last week from Moody's Investors Service, which noted that the city is in danger of draining its reserves by the end of the fiscal year. In response, the council approved up to 4,000 layoffs.
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But that didn't stop S&P from cutting the its rating from AA to AA-, which will drive up the cost of borrowing. S&P wants to see the city follow through on its cost-cutting plans, Santana said. Fitch cut its rating last November.