Sacramento, CA — California’s credit rating has received a boost. Today, State Controller John Chiang reported Standard & Poor’s and Fitch agencies have both indicated a more favorable outlook on the State’s credit rating.
Chiang says, “With the State’s chronic cash problems fading, I am pleased that two rating agencies are poised to upgrade California’s credit worthiness.”
Standard & Poor’s has maintained an “A” rating, but revised California’s outlook to “Positive” from “Stable”. It also cited Governor Jerry Brown’s 2015 budget recommendations for putting the state’s finances back to the best situation in years. In addition, Fitch Ratings has called Brown’s budget proposal a reasonable and prudent course to further strengthen California’s financial condition.
Chiang also says, “If we hope to continue to govern outside of crisis, we must avoid the over-spending mistakes of the past and take a long-term view of how to sustain the State’s fiscal health.”
Another major credit rating agency, Moody’s Investors Service, has not yet issued a ratings statement.