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California; Tax Secured, General Obligation Jun 01
Standard & Poors, June 2001
Abstract
California's $1 billion GO bonds are assigned a rating of 'A+'; outstanding GO debt is affirmed at 'A+'. The rating remains on CreditWatch with negative implications, where it was placed Jan. 19, 2001. The CreditWatch designation reflects the uncertainty regarding the state's ability to sell approximately $12.5 billion of revenue bonds to fund future state power purchases and reimburse the state general fund. The rating reflects the mounting and uncertain cost to the state of the current electrical power crisis, as well as its likely long-term detrimental effect on the state's economy. Given the large magnitude of the problem in relation to the size of fund balances the state typically budgets, the capacity to pay debt service, while still adequate,...
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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