LOS ANGELES COUNTY : $80 Million in County Bonds Are Downgraded

More than $80 million in bonds issued by Los Angeles County have been downgraded by Moody’s Investors Service, which cited the combined effects of the state’s budget woes and recession for the revision. The rating agency reduced its rating of the county’s general obligation bonds by one step to Aa from Aa1--still one of the highest ratings for similar bonds issued by any county in California.

At the same time, Moody’s, one of the nation’s two largest rating agencies, confirmed the existing investment grade rating on the county’s more than $2 billion in outstanding lease obligations. “Although the county’s weakened financial position directly affects the credit strength of these obligations, the change is not sufficient to merit a rating revision,” the company said.