In this case, the collapse in economic activity caused a collapse in revenue to an LA utility.
Notice that publicly traded utilities are doing just fine.
* * * * * J B K * * * * *
San Francisco
One of the nation's top bond rating agencies Monday announced it would reassess its bond rating of the Los Angeles Department of Water and Power, a move that Mayor Antonio Villaraigosa blamed on the City Council's failure to approve electricity rate hikes last week.
Fitch Ratings withdrew a "AA-" rating it had given on two DWP bonds worth $720 million. That action can lead to a rating downgrade which, if that occurs, could make it more expensive for the DWP to borrow money.
"Today we are facing the consequences of the city's failure to enact the necessary rate increases with Fitch Ratings, a major credit rating agency, withdrawing the DWP's AA- bond rating, thereby costing the ratepayers more in the long run,'' Villaraigosa said in a statement released Monday evening.
