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S&P Raises California’s Credit Rating

Klotz on Bonds

Home > News and Perspectives > S&P Raises California’s Credit Rating

<h3>James A. Klotz</h3>

James A. Klotz

Standard & Poor’s, citing a pickup in the state’s economy and the enactment of a 2005 budget, raised California’s credit rating three notches to A from BBB. S&P also projected a “stable” outlook going forward.

California started on the road to recovery when voters approved $15 billion in economic recovery bonds in March ($11 billion have been issued to date). The state has utilized the bond proceeds to repay $14 billion in short-term notes that matured in June and retained the authorization for the additional $4 billion to address any unforeseen budgetary shortfalls over the next two years.

In May, Moody’s upgraded California’s credit rating to A3 from Baa1.

James A. Klotz is the President of FMSbonds, Inc.
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Aug 30, 2004

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