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State May Face Lower Bond Rating

Sacramento, CA — California is in danger of a lower bond rating because of its budget woes.

Moody´s Investors Service is warning it might downgrade California´s general bond rating because its finances have deteriorated. The state is facing a $42 billion budget deficit through mid 2010 and could run out of cash next month.

A low credit rating could cost the state more to borrow money.

This post was last modified on 01/31/2009 1:29 pm