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Moody's affirms California's A1 GO rating, maintains stable outlook
August 5, 2013 / 3:18 PM / 4 years ago

Moody's affirms California's A1 GO rating, maintains stable outlook

Aug 5 (Reuters) - Moody’s Investors Service late on Friday said it affirmed California’s A1 general obligation bond rating and maintained the state’s stable outlook.

The stable outlook affects about $95 billion in net tax-supported debt outstanding.

The A1 rating on the state includes its volatile tax revenue structure and governance issues, primarily “restrictions placed on the legislature in the budgeting process and a reluctance to build reserves, which has made it difficult for the state to address economic and revenue downturns.”

Moody’s said the rating also “reflects the state’s large, diverse economy and high wealth, and the long-term liabilities (debt, unfunded pension liabilities, and repayment of other obligations captured in negative audited balances) that are moderately high compared to other states.”

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