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California; Appropriation, Appropriation; Housing, Other; Tax Secured, General Obligation Sep 01
Standard & Poors, Sep 2001
Abstract
The rating on California's GO bonds reflects: The impact to the state's general fund of $6.1 billion of purchases of electrical power to avoid blackouts; The potential for more general fund purchases if current plans for a $12.5 billion power revenue bond fall through or spot electricity prices rise; and The possible long-term detrimental effect on the state's economy of sizeable recent increases in retail electric rates, as well as possible further rate increases to recapitalize the state's insolvent investor owned utilities (IOUs). Although Standard & Poor's has assigned the highest short-term rating to the state's upcoming $5.7 billion note sale, the state would need to substantially deplete its other internally borrowable funds, principally transportation accounts, to retire the notes...
Companies mentioned in this report are: California
Action: New Rating
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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