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Purveyor

(29,876 posts) Wed Jun 25, 2014, 04:23 PM Jun 2014

California Upgraded by Moody’s to Highest in 13 Years

By James Nash and Brian Chappatta Jun 25, 2014 3:51 PM ET

California’s credit rating was raised to the highest since 2001 by Moody’s Investors Service, which cited improving finances in an election-year boost for Governor Jerry Brown.

Moody’s upgrade to Aa3 from A1 puts California two steps higher than Standard & Poor’s and Fitch Ratings, which last year upgraded California to A, sixth-highest. Moody’s ranks the largest U.S. state equal with Connecticut and ahead of Illinois and New Jersey. A higher rating may lower the state’s borrowing costs.

The improvement reflects California’s “rapidly improving financial position, high but declining debt metrics, adjusted net pension liability ratios” and employment growth, Moody’s analysts led by Emily Raimes said today in a report.

Brown, a 76-year-old Democrat running for a fourth term, signed a record $156.3 billion spending plan last week. A surge in revenue, mostly from capital gains and temporary income- and sales-tax increases, has taken the state from a $25 billion deficit three years ago to a record surplus.

Legislators unanimously passed a bill last month that asks voters to create a reserve fund to cushion against weaker economic growth. California would set aside 1.5 percent of general-fund revenue each year as well as capital-gains taxes that exceed 8 percent of the general fund.

more...

http://www.bloomberg.com/news/2014-06-25/moody-s-upgrades-california-to-aa3-on-financial-gains.html

7 replies

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Highlight:

California Upgraded by Moody’s to Highest in 13 Years (Original Post) Purveyor Jun 2014 OP

But..but you can't tax your way to prosperity! Fixed noise says so! muntrv Jun 2014 #1

Go figure.... louis-t Jun 2014 #2

See what happens when you dump Republicans? Cali_Democrat Jun 2014 #3

Word! CaliforniaPeggy Jun 2014 #5

Biggest myth in America is that republicans are better for the economy chelsea0011 Jun 2014 #4

And ain't that the truth? CaliforniaPeggy Jun 2014 #6

Kick! tenderfoot Jun 2014 #7

muntrv

(14,505 posts)

1. But..but you can't tax your way to prosperity! Fixed noise says so!

Reply to Purveyor (Original post)

Wed Jun 25, 2014, 04:26 PM

Jun 2014

louis-t

(23,266 posts)

2. Go figure....

Reply to Purveyor (Original post)

Wed Jun 25, 2014, 04:27 PM

Jun 2014

Dems = increased revenue, higher employment, higher wages, better living standard vs. Repugs with higher debt, higher unemployment, lower standard of living for the majority, more wars, more death, more disease, etc. etc.

Cali_Democrat

(30,439 posts)

3. See what happens when you dump Republicans?

Reply to Purveyor (Original post)

Wed Jun 25, 2014, 04:27 PM

Jun 2014

A huge budget deficit turns into a record surplus after Arnold is shown the door.

This is happening on the federal level as well. The federal budget deficit is shrinking at record pace after Obama's tax increases on the wealthy.

Never listen to Republicans when it comes to debt/deficits.