Thursday, January 14, 2010

California’s Credit Cut by S&P Amid Budget Deficit (Update1) - Bloomberg.com


California’s Credit Cut by S&P Amid Budget Deficit (Update1) - Bloomberg.com:

"Jan. 13 (Bloomberg) -- California’s credit rating on $64 billion of general obligation bonds was cut by Standard & Poor’s today as the most-populous U.S. state faces renewed strains over a $20 billion budget deficit.

Gabriel Petek, a San Francisco-based S&P analyst, said the rating was lowered one level to A-, the seventh-highest investment grade. He said the company has a negative outlook on California debt, a sign its standing may decline further. The rating company also cut $13.3 billion of other state debt, including that backed by lease payments."