California Credit Upgrade

[MtnBiker]

SAN FRANCISCO (Reuters) - A leading Wall Street ratings agency on Friday raised California's credit rating, citing an improving economy, the first such upgrade in four years and a move that promised to bring down the state's borrowing costs on $44 billion in debt.



Analysts saw the unexpected credit upgrade by Moody's Investors Service as an endorsement of the steps Gov. Arnold Schwarzenegger (news - web sites) has taken to bring California back from the brink of a fiscal crisis that drove its credit ratings near junk levels and had threatened to effectively shut the state out of the bond market for new borrowing.


Citing an "established trend of recovery," Moody's raised California's rating to A3 from Baa1, reversing a downgrade it made in December out of concern over continued political deadlock and a move by Schwarzenegger to cut car license fees.


Moody's rivals Standard & Poor's and Fitch Ratings said they want to see the budget that California lawmakers pass for the fiscal year starting in July before weighing ratings changes of their own.


Schwarzenegger, who has proposed a budget plan that would close a $14 billion budget gap without raising taxes, applauded Moody's: "Their financial analysts have had a chance to carefully review our revised budget and our economic outlook, and they've concluded that it warrants an improvement in California's standing in the nation's financial markets."


Moody's upgrade affects about $35 billion of outstanding general obligation bonds and nearly $9 billion of lease revenue bonds and enhanced tobacco bonds backed by the state's general fund. The upgrade was Moody's first since September 2000 for California's general obligation debt.


Employment in California's private sector and personal income in the state have resumed a "moderate pace of growth," and tax collections signal an economic recovery, Moody's said.


California's credit rating may be in line for additional upgrades, said Evan Rourke, a municipal strategist at Popular Securities in New York. "I would expect that barring some kind of disaster or extraordinary event, you're likely to see further improvement. It's a reflection of the improved economy and credit conditions," Rourke said.
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[freeandfun1]

Who cares?

 

[5stringJeff]

Actually, that is a good piece of news for Schwarzenegger. If his policies result in a better credit rating, they have less interest to pay, plus he can go back to the Democrats and say, 'Look, my policies are working, Wall St. agrees, now here's the way I want to continue these policies.'

 

[freeandfun1]

Originally posted by gop_jeff
Actually, that is a good piece of news for Schwarzenegger. If his policies result in a better credit rating, they have less interest to pay, plus he can go back to the Democrats and say, 'Look, my policies are working, Wall St. agrees, now here's the way I want to continue these policies.'

I know.... I was just being facetious. . . . This is good news for the GOP in California (and needed good news).

 

[fuzzykitten99]

I wish we would have had Ah-Nold instead of Jesse The Dummy. Not that Jesse really did anything to begin with, other than several publicity stunts.

 

[DKSuddeth]

It's nothing but the vast right wing conspiracy

 

[dilloduck]

I guess this decision didn't help to slow down the nut cases though. The State House has passed a bill making it illegal to sing,smoke and drink anything while you are driving. Earthquake anyone?

 

[fuzzykitten99]

i can see MAYBE smoking, because of the people who think that the curb is an ashtray, or those that flick still lit butts, then they fly up and land in other people's cars. There was a story on the news recently of a woman's 5 yr old getting 2nd degree burns from a cigarette that another driver flipped out the window, but landed in the other woman's car, in the back seat. Or the lit butts start grass fires. Banning everything else is stupid. Singing? C'mon!

 

[nycflasher]

Originally posted by dilloduck
I guess this decision didn't help to slow down the nut cases though. The State House has passed a bill making it illegal to sing,smoke and drink anything while you are driving. Earthquake anyone?

Is that a joke?

 

[nycflasher]

Originally posted by gop_jeff
Actually, that is a good piece of news for Schwarzenegger. If his policies result in a better credit rating, they have less interest to pay, plus he can go back to the Democrats and say, 'Look, my policies are working, Wall St. agrees, now here's the way I want to continue these policies.'

Yeah, that is definitely good news for Arnold. I still can't believe he got elected, but what would be even more surprising is if HE were responsible for seriously helping Cally's troubled economy.

Not that I don't like him, I just don't have a whole lot of faith in this actor/weight-lifter's understanding of government operations.

Power to ya Arnold, if you can save California before it slides into the Pacific.

 

[dilloduck]

Originally posted by nycflasher
Is that a joke?

No joke---also included is looking in the back seat, petting a dog,
scolding a child, changing radio stations--wish i had a site for ya to check it out.

 

[nycflasher]

Originally posted by dilloduck
No joke---also included is looking in the back seat, petting a dog,
scolding a child, changing radio stations--wish i had a site for ya to check it out.

Holy shit.
I thought the 3 strikes law was a bit extreme...

Next time I'm in LA I'm going to pull up to a green light and just sit there while petting my dog and changing the radio station. Maybe I'll look into the backseat, too.

 

[Lefty Wilbury]

cali is getting ready to pass a bill that makes it illegal for teens to use tanning beds. bunch of granola eatin nuts out on the left coast.

 

[nycflasher]

Man, I lived in Phoenix for 2 years and used to think that too much sun exposure without a dose of snow or fall or something just cooked people's brains like a fried egg...

I actually met these two guys backpacking in the Gila National Forest on the AZ/NM border who hadn't left that town(they raised cattle on BLM land) their WHOLE lives and they were like 50.

But that's another story I guess... and don't get me wrong I love the sun and the outdoors. But man, it's like, don't look directly at the sun! What happened to these people and their common sense? It's against the law to change the radio station while you're driving? Aren't there towns in Cally where it's illegal to smoke cigarettes?

 

[freeandfun1]

Originally posted by Lefty Wilbury
cali is getting ready to pass a bill that makes it illegal for teens to use tanning beds. bunch of granola eatin nuts out on the left coast.

I bet they can get abortions without their parents consent though.....

 

[nycflasher]

Originally posted by Lefty Wilbury
cali is getting ready to pass a bill that makes it illegal for teens to use tanning beds. bunch of granola eatin nuts out on the left coast.

I have reecently allocated a portion of my backyard for teens to come and tan themselves.

Must be 18 to apply, please.

 

[5stringJeff]

Originally posted by nycflasher
I have reecently allocated a portion of my backyard for teens to come and tan themselves.

Must be 18 to apply, please.

And single and female too, right?

 

[nycflasher]

Originally posted by gop_jeff
And single and female too, right?

That's how we like 'em, yep.

Actually, I don't care if they're single as long as they bring their girlfriend(s) with 'em.

 

[uscitizen]

Bump for the Ahnuld deniers.

 

[Trajan]

bump for those incapable of sussing out the fact that the dem legislature and Unions destroyed him and then he turned into exactly what he really was/is.......


so, gray davis, arnold, brown...and? what our credit rating now?