Moody's warns city of need to act

Los Angeles received more bad news on Wednesday when a top Wall Street rating agency moved one step closer to lowering the city's credit rating, saying city officials were taking too long to balance the budget.Daily News.

Moody's Investors Service told investors it was lowering the city's credit outlook to "negative" from "stable" - meaning a credit downgrade is now more likely, though not certain.

A lower credit rating could force the city to pay much higher interest rates on its debt.