{"id":9137,"date":"2009-06-17T03:23:36","date_gmt":"2009-06-17T03:23:36","guid":{"rendered":""},"modified":"2009-06-17T03:23:36","modified_gmt":"2009-06-17T03:23:36","slug":"credit-agencies-put-california-on-watch-list","status":"publish","type":"post","link":"https:\/\/calitics.com\/index.php\/2009\/06\/17\/credit-agencies-put-california-on-watch-list\/","title":{"rendered":"Credit Agencies Put California on “Watch List”"},"content":{"rendered":"

Well, this isn’t good:<\/p>\n

Standard & Poor’s Ratimg Services has placed California’s credit rating, already the lowest among the states, on a watch list “with negative implications” due to the state’s chronic and unresolved budget deficit.<\/p>\n

The credit watch notification on general obligation and lease-revenue bonds reflects “our assessment of the state’s projected depletion of cash by the end of July 2009 absent the adoption of a significant revision to the fiscal 2010 budget,” S&P said in a statement.<\/p>\n

“Although we continue to believe the state retains a fundamental capacity to meet its debt service, insufficient or untimely adoption of budget reforms serve to increase the risk of missed payments in our view,” the notice continued. (CapAlert 6\/16\/09<\/a>)<\/p><\/blockquote>\n

That’s going to cost us some more money as we will have to pay higher interest rates.  You know what would help? The federal government guaranteeing our loans as a backstop<\/a>. It wouldn’t cost the feds a dime, as California really won’t default on our debts.  It could save the state over a billion dollars, dollars that could be spent on the state’s neediest instead of the big financial institutions.<\/p>\n","protected":false},"excerpt":{"rendered":"

Well, this isn’t good:<\/p>\n

Standard & Poor’s Ratimg Services has placed California’s credit rating, already the lowest among the states, on a watch list “with negative implications” due to the state’s chronic and unresolved budget deficit.<\/p>\n

The credit watch notification on general obligation and lease-revenue bonds reflects “our assessment of the state’s projected depletion of cash by the end of July 2009 absent the adoption of a significant revision to the fiscal 2010 budget,” S&P said in a statement.<\/p>\n

“Although we continue to believe the state retains a fundamental capacity to meet its debt service, insufficient or untimely adoption of budget reforms serve to increase the risk of missed payments in our view,” the notice continued. (CapAlert 6\/16\/09<\/a>)<\/p><\/blockquote>\n

That’s going to cost us some more money as we will have to pay higher interest rates.  You know what would help? The federal government guaranteeing our loans as a backstop<\/a>. It wouldn’t cost the feds a dime, as California really won’t default on our debts.  It could save the state over a billion dollars, dollars that could be spent on the state’s neediest instead of the big financial institutions.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[],"tags":[],"class_list":["post-9137","post","type-post","status-publish","format-standard","hentry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack-related-posts":[],"jetpack_shortlink":"https:\/\/wp.me\/p6Pvhz-2nn","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/posts\/9137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/comments?post=9137"}],"version-history":[{"count":0,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/posts\/9137\/revisions"}],"wp:attachment":[{"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/media?parent=9137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/categories?post=9137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/tags?post=9137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}