Bangkok--22 Jun--Standard & Poor's
Standard & Poor's Ratings Services sees California's credit rating (A-/Negative) at a crossroad as fiscal 2012 approaches. The choices and related rating implications are explained in a new report, "California Credit Quality And Ratings Are At A Crossroad" published today on RatingsDirect on the Global Credit Portal.
"We believe California's near-term credit quality is affected by its budget situation more than most states because of the implications for the state's cash position," said Standard & Poor's credit analyst Gabriel Petek. "In our view, the budget process is significant in California's credit profile because if a budget is not adopted in time for the state to issue its revenue anticipation notes before its cash runs low, the state's basic operating liquidity can become inadequate," added Mr. Petek.
The report details the three roads which Standard & Poor's sees occurring: structural budget balance, budget balance premised on one-time deficit solutions achieved prior to a severe cash crisis, or a protracted budget impasse.
The report is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to
[email protected]. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contact:
Edward Sweeney, New York (1) 212-438-6634,
[email protected]
Analyst Contacts:
Gabriel Petek, CFA, San Francisco (1) 415-371-5042
David G Hitchcock, New York (1) 212-438-2022