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.