S&P Gives CA Revenue Note Highest Rating since 2007 (Sacramento: sale, credit rating)

[18Montclair]

Ive stated for a long time that Sacramento is actually better than DC when it comes to fiscal restraint, we keep getting singled out because we reach an impasse during buget planning, but in reality, our debt per GDP is 5% compared to 100% for the Federal Govt.

California’s $5.4 billion sale of revenue-anticipation notes won Standard & Poor’s top short-term credit rating for the first time since 2007, Treasurer Bill Lockyer said.

S&P assigned a rating of SP-1+ to the Sept. 15 issue, citing California’s smaller-than-usual borrowing and ability to absorb declines in cash flow without threatening the notes, known as RANs.

California

We're borrowing less and working with what we have even when its less. Kudos.

[a34dadsf]

That's because the federal government has the backing of the purchasing power of the dollar which it can use to justify going into massive debt. After all, most people expect the feds to just print the money to pay the bills.

With the state governments they don't have that option so no one will lend to them at low rates.

[bmw335xi]

Originally Posted by 18Montclair

Ive stated for a long time that Sacramento is actually better than DC when it comes to fiscal restraint, we keep getting singled out because we reach an impasse during buget planning, but in reality, our debt per GDP is 5% compared to 100% for the Federal Govt.



We're borrowing less and working with what we have even when its less. Kudos.

Nice post!