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Klotz on Bonds
It’s unanimous!
Following the lead of Moody’s and Standard & Poor’s (S&P), Fitch Ratings upgraded the rating of California General Obligation debt. Fitch raised its rating to A- from BBB.
California is now rated in the A category by three rating agencies, which had all dropped the state to BBB levels last year when California was experiencing a liquidity crisis.
The state is currently rated A3 by Moody’s Investor’s Service and A by S&P.
Please note that all investing entails risk. Fixed income securities are subject to risks that will affect their value prior to maturity. Some of these risks can be related to changes in market conditions, issuer creditworthiness, and interest rates. This commentary is not a recommendation to buy or sell a specific security. All references to tax-free income refer to U.S. federal income tax. Income earned by certain investors may be subject to the Alternative Minimum Tax (AMT), and or taxation by state and local authorities. Please consult with your tax professional prior to investing. For more information on these topics please click on the “Bond Basics” link below or search by keyword at the top of this page.
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