Posted on 07/20/2011 1:36:02 PM PDT by SeekAndFind
Standard & Poor's has removed the immediate risk of a downgrade of California's debt rating, saying the state's plan to balance its budget was "largely realistic."
S&P on Thursday raised its outlook for California’s rating to “stable” from “negative.” The rating, A-minus, still is the lowest of any of the 50 states.
“The negative outlook had been linked to the possibility of a recurring cash deficiency that we now believe the enactment of the fiscal 2012 budget is likely to mitigate for the most part,” S&P said in a report. “Because the state has improved the structural alignment between its recurring revenues and expenditures, we now view the state's rating outlook as stable through the two-year outlook horizon.”
Importantly, the $129.5-billion budget deal reached by Gov. Jerry Brown and the Legislature will allow the state to issue so-called revenue anticipation notes later this summer, S&P said. California normally borrows billions of dollars via short-term notes in late summer or autumn to tide it over until tax revenue arrives the following spring.
Treasurer Bill Lockyer has said he plans to sell about $5 billion in notes sometime in August.
(Excerpt) Read more at latimesblogs.latimes.com ...
Great! Now we can sell more bonds and create more debt!
...the smartest people in the room are throwing us off a cliff and calling it flight.
Sucks that we’re powerless to stop them. :(:(:(
Shows the absurdity of S&P and other ratings firms. This budget was built on gimmicks, parlor tricks and rosy revenue forecasts. Everybody knows it, including the governor.
Let’s see what the interest rate on the RANS is
These so-called “rating services like S&P are also part of the problem. They are only acting to protect political entities that they like and to cover their own asses. They are really no different that the Big Accounting Firms that cooked fictitious books for failing companies. The good news is that Arthur Anderson is no more, and perhaps, if we are lucky S&P and the rest of these liars will be exposed and suffer the same fate.
They are hoping for increased tax revenues. They are getting a bit of that, but going forward its a huge gamble.
The odds are not good. The best hope California has, ironically, is that the Republicans will improve the national business climate by next year.
Exactly - no one paying even the slightest bit of attention could possibly think the California budget is serious.
The fact that S&P is saying it is only proves just how ingrained the the Ruling Class is getting.
Please tell us how that differs from the gimmicks, parlor tricks, rosy revenue forecasts, and outright lies of the last six years under Arnold. S&P could be telling the truth.
CA voters aren’t fond of new taxes but they sure do love their bonds.
There is not enough competition, so they have no accountability for accuracy.
The good news is that Arthur Anderson is no more, and perhaps, if we are lucky S&P and the rest of these liars will be exposed and suffer the same fate.
Back then there were "the big eight." Now there are fewer, each "too big to fail."
Isn't oligopoly wonderful?
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