On Tuesday, the last of the country's major financial credit agencies undertook the development of lowering Los Angeles' bond rating, which will now most likely cost the city over a million dollars more whenever it looks to borrow in future.

As was revealed by City Administrative Officer Miguel Santana, the Standard & Poor's downgrade was mainly because of growing concerns about the substantial fall in tax revenues that city official have witnessed, and also because of their plans to draw on reserves to close the year in the black.

Standard & Poor's, according to city analysts, stressed that officials had undertaken some steps in order to try and close the budget gap, like last week's authorization to do away with 4,000 city workers with the aim to save as much as $300 Million during the next fiscal year.

Analysts are, however, still concerned that officials are continually spending more than they receive in revenue.

The agency has downgraded Los Angeles to "AA-minus" from "AA" with an outlook which is stable.