LOS ANGELES -- Moody's Investors Service yesterday lowered its rating on Los Angeles general obligation bonds to Aa1 from Aaa, citing the effects of a severe economic downturn.

"The current economic downturn has proven to be deeper and more prolonged than any other since World War II," Moody's said in a release. "While Los Angeles has shown resiliency during past recessions, a local recovery does not appear likely before 1994 and even so, a sluggish rebound is expected at best."

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