The agency is also revising its outlook on the state from “stable” to “positive.” That means a further ratings upgrade could be possible.
Fitch credits California’s improving economy and what it calls “institutionalized changes” to the state’s fiscal management. It also praises California’s “spending restraint” and reduced budget debts. But it says the state’s rating will likely remain below that of other states – and that California is still “a long way from full recovery.”
Earlier this year, Standard and Poor’s also upgraded the state’s credit rating from “A-minus” to “A.” Moody’s Investors Service has yet to issue a similar upgrade.