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Summary: California; Tax Secured, General Obligation Jul 01
Standard & Poors, July 2001
The removal of California's ratings from CreditWatch reflects the alleviation, at least for the time being, of liquidity pressure on California's general fund, following the recent closing of a $4.3 billion interim loan facility with J.P. Morgan Securities Inc., Lehman Brothers, and other financial institutions for future purchases of electric power through the state's Department of Water Resources. The maintenance of the 'A+' GO rating, but with a negative rating outlook, reflects the state's continued rapid level of spending for power purchases; the only thing that has changed is that it is using borrowed money instead of its own. The interim loan facility buys the general fund time to find a satisfactory workout situation. The amount of the interim loan...
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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.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.