LOS ANGELES (AP) -- The city of Los Angeles will no longer hire Standard & Poor's to rate its $7 billion general investment pool because the firm recently downgraded the city's portfolio from AAA to AA.

Interim Treasurer Steve Ongele says the city has lost faith in S&P's judgment.

The Los Angeles Times reports Ongele told the City Council's Budget and Finance Committee this week that the city should be proud for cutting ties with S&P.

He notes the market crash that came with the real estate debacle occurred because rating agencies like S&P gave unworthy corporations AAA ratings.

Ongele says canceling the contract will save the city $16,000 a year.