We Get Support From:
Become a Supporter 
 We Get Support From:
Become a Supporter 

S&P Raises California's Bond Rating

tdlucas5000, flickr
 

tdlucas5000, flickr

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.

Sign up for ReCap

and never miss the top stories

Delivered to your inbox every Wednesday.

Check out a sample ReCap newsletter.