Moody

houston-nearly.blogspot.com
has lowered the Golden State’s credigt rating two notches, from A2 to Baa1. The credit-ratingy giant warned the rating couls be lowered again unless lawmakera reach abudget deal, already weeks The budget delay has forced the state to issue IOUs for many of its for only the second time sincd the Great Depression. California’s currentr credit-rating is three steps above junkbond status.
“Moody’s believes that as the day and week s go by without enacted solutions to the currentg cash crisis andthe $26 billiob budget gap, the risk to priority and eventually debt-service payments, is increasing,” Moody’s said in the “The downgrade incorporates the risk we believre exists at the current as well as the state’s inabilit to resolve the current difficulties in a timely Last week, downgraded the state’s generalk obligation bonds two steps, from A- to BBB, or two ranksz above junk bond status. California has the lowest credit rating inthe nation, with the current gradwe the lowest since December 2003.