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California's GO, Lease Ratings Placed On Negative CreditWatch Jun 09
Standard & Poors, June 2009
Abstract
SAN FRANCISCO (Standard & Poor's) June 15, 2009--Standard & Poor's Ratings Services placed its 'A' rating on California's general fund-supported general obligation (GO) debt, and its 'A-' rating on the state's appropriation-backed lease revenue debt, on CreditWatch with negative implications reflecting our assessment of the state's projected depletion of cash by the end of July 2009 absent the adoption of a significant revision to the fiscal 2010 budget. Although we continue to believe the state retains a fundamental capacity to meet its debt service, insufficient or untimely adoption of budget reforms serve to increase the risk of missed payments in our view. This action affects approximately $59 billion of GO debt and $8.1 billon of appropriation debt. Both the timing...
Companies mentioned in this report are: California
Action: On CreditWatch:Negative
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: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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