LOS ANGELES -- Moody's Investors <
Service yesterday said it is taking no rating action following the recent civil disturbances in Los Angeles, but the agency said it will study the impact to determine any long-range rating implications.
Based on preliminary estimates, <
the riots will cost the city and its agencies about $37.4 million, Moody's said. Of that amount, $26.9 million represents extraordinary costs that the city and its agencies would not otherwise incur.
Los Angeles is pursuing federal <
cash advances and grants to help offset these costs, the rating agency said.
"While Moody's has taken no rating <
action because of the disturbances, as more information on the budget and the potential impact of the disturbances becomes available, it will be considered during our rating review to determine the long-range credit implications," said the agency, which expects to complete its annual review of the city's general obligation and lease ratings in early July.
Separately, Moody's said it is reviewing <
the implications of the city's plan to help cover a budget shortfall by transferring $25 million from its community redevelopment agency.
"While the transfer may have direct <
implications for the credit position of the tax allocation bonds of the (agency's) Bunker Hill Project Area, it also reflects the city's continuing financial strain," Moody's said.
The agency said it will review the <
Bunker Hill Project bonds to determine the credit implications, "if any," of the proposed transfer of monies to the general fund.
Moody's rates the city's general <
obligation bonds Aaa, its equipment and convention center leases A1, and its fixed-asset leases Aa. The redevelopment agency's Bunker Hill bonds are rated A.