The credit rating agency Standard and Poor’s has raised California’s bond rating. S&P announced Thursday the state’s rating on its general obligation debt has improved from A+ to AA-.
S&P’s Gabriel Petek says the state has made several positive changes over the years.
"Since maybe 2011 the state has paid down a lot of its budgetary debts, paid off deferrals that it owed to the schools and now it’s even funding a rainy day fund reserve," he says.
Petek says the agency also appreciated that the Legislature used more conservative revenue estimates in the budget process. S&P says the state’s finances will be more stable because it took on fewer spending commitments than the Legislature had initially proposed.