A major credit-rating agency lowered California’s debt rating Wednesday, putting pressure on Gov. Arnold Schwarzenegger and lawmakers to start tackling the state’s $20 billion deficit.
Standard & Poor’s lowered its rating on California’s $64 billion general obligation debt one step, from “A” to “A-.” The agency also dropped $9.4 billion in lease-revenue bonds three notches, from “A-” to “BBB-.”
California had the lowest general obligation rating of any state when S&P dropped it from “A+” to “A” in February 2009. Fitch and Moody’s, two other rating firms, have followed with their own downgrades.
How low can you go? California is reviving the Limbo.
Problem is, Br_er, California is merely a precursor of our national future unless we immediately stop our disastrous policies.