Monday, July 6, 2009

It could be worse – we could live in California

California Bonds: Attack of the Killer BBB

There's not much golden about California these days -- least of all its bonds. Fitch Ratings downgraded the state's long-term general obligation bond rating to BBB from A- on Monday, the second cut on the reading since June. The bonds remain on rating watch negative. Fitch attributed the downgrade to California's continued inability to achieve timely agreement on budget- and cash flow-solutions amid its severe fiscal crisis. An agreement was suppose to be reached by the end of the state's fiscal year on June 30. The state has been unable to close its $26.3 billion deficit and plans to resort to issuing more than $3 billion in IOUs to thousands of creditors. The use of IOUs for non-priority payments would offset cash shortfalls into September 2009. The BBB rating is two notches above junk.

Posted by devo @ 11:28 PM (637 views)
Please complete the required fields.



One thought on “It could be worse – we could live in California

Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>