Friday, November 13, 2009

New York governor sees risk of California bond default | Money & Company | Los Angeles Times


New York governor sees risk of California bond default Money & Company Los Angeles Times:

"Besides understanding his own state’s finances, New York Gov. David Paterson apparently has an excellent grasp of California’s fiscal situation.

So much so, in fact, that Paterson feels confident speculating publicly about the probability of California eventually defaulting on its municipal bond debt.

In a Bloomberg Radio interview on Thursday, Paterson described his plans for dealing with New York’s financial woes, and why it was important to avoid budget 'gimmicks which grind up your credit rating.'

New York still has an 'AA' credit rating from Standard & Poor’s, compared with California’s 'A' rating, which is the lowest of any state."