California’s credit rating lowest among states

February 3rd, 2009, 4:43 pm · 18 Comments · posted by BRIAN JOSEPH, Sacramento Correspondent

Standard & Poor’s announced today it has cut California’s credit rating, dropping California to the lowest-rated state in America.

The reason for the further downgrade?

“The lowered rating reflects our view of the state’s inability to reach an agreement on a mid-year budget revision and its rapidly eroding cash position,” Gabriel Petek, an S&P analyst in San Francisco, said in the release.

On the plus side, California is still rated A, the lowest investment grade.

Moody’s Investor Services and Fitch Ratings, the other two rating services, have said they may also cut their ratings for California.

California used to share the dubious lowest-rating tag with Louisiana, but now after the S&P cut, California holds the lowest rating all to itself.

Credit ratings affect the interest rates on money the state borrows. Lower ratings mean higher interest rates.

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Posted in: State budget • meltdown

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larry says:

February 3, 2009 at 5:42 pm

I have lived in California since the 50’s. Now we have to lock up our trash cans at night. If you want it to last you have to bring it in at night.
that is after you watch it all day. I wish I could move but I am disabled with a family. So I am stuck here with this lowest credit rate in the USA history.

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daryl says:

February 3, 2009 at 5:49 pm

Well, with higher interset rates , the banks can stay longer on their tax payers vacations. After all , we`re paying for it why not?? iN that case , why can`t people on welfare keep working and collect 2 checks? Makes sense to me. After all, i`m sure many already are. What would this country do without us poor tax paying slobs???

Abacrombie 1 says:

February 3, 2009 at 6:30 pm

Is anyone really surprised, highest taxes, lowest educated, spend till you drop legislators, highest pop. of illegal alien and handout to anyone with a hand. If I could only sell my home I’d take my tax dollars and leave. Go head and say good riddens just buy my home and I will be gone.

BS says:

February 3, 2009 at 6:36 pm

The bleeding heart liberals have destroyed this state………thanks Feinstein.Boxer,Waxman and the democratic legislation. As is our Congress the country is next!

Johnny Dilznik says:

Look at who is in the legislature and how that has worked out for us. Free education, after school care, lunches and a whole lot more. Nice job CA politicians. And oh yeah, just give us more money and we will be o.k………..right.

reader says:

February 3, 2009 at 6:48 pm

It is ironic when an individual can potentially have a higher credit score than a Republic.

case closed says:

February 3, 2009 at 7:19 pm

California needs to go by the Federal smog laws and quit trying to be different there driving everyone with money out of California and into the conservative states where taxes are still low and Americans still have more rights then the illegals..

ed says:

February 3, 2009 at 7:29 pm

Gee golly…………….I just did my non-resident Calif income tax. I owe the state $87 because my wife still had a job here in January 08. I hope they don’t spend it all in one place. I am tooooo happy to give Missouri my state income taxes!

Bail out while you can, suckers!! Another couple of years and it’ll be just illegal aliens and government workers in this (formerly) beautiful state. The rest of you who cling to the weather………………….stand by. You ain’t seen nothing yet.

wthitc says:

February 3, 2009 at 7:35 pm

Another year, another budget crisis in California. Used to be a great place, now it’s a S*it hole. Just a couple more years and I’m outa here. Thank God.

beachbum says:

February 3, 2009 at 7:37 pm

Way to go bleeding heart liberals. Keep giving it away to the illegals…..
Look what has happened in europe, we are next.

California use to be a great place to live and raise a family, not anymore.
More people will begin to leave as well as businesses, then there won’t be enough people o pay taxes for all the free loaders.

Rico says:

February 3, 2009 at 8:06 pm

Hope our politicians learn a lesson from this but I doubt it. The free ride is over. Unemployment funds are drying up! I have to wait for my refund because of this mess. MY MONEY! I have already adjusted my w4 so that I will break even next year. Shame since the state was getting an interest free loan from me. No more! Wonder if I can send a copy of the IOU to the DMV when my registrations come due? They can take it off my tab.

OC Taxpayer says:

February 3, 2009 at 10:12 pm

At least S&P,Moodys, and Fitch are trying to give an accurate credit rating this time. Apparently stupid liberal politicians are easier to understand than liar loans. I don’t know who’s leading who here the stupid, the greedy, or the incompetent.

Why don’t we just give our teachers, firefighters, and other government employees even more money and benefits, give more free services to illegal aliens, translate every form of communication in the state to Spanish and then hand the whole mess of a state back to Mexico.

Ralph Mission Viejo says:

February 3, 2009 at 10:25 pm

Actually you can point the finger at Gov. Schwartznegger for this embarrassmnet. How does a wise and knowledgeable governor explain that taking out bonds to pay off some state debt is an intellectual investment. The long haul affect is that Californians are the ones whom will have to repay these loans, which includes in some cases high interest. Its no surprise to me that were in this mess with all the partisanship thats taken place at the capitol. Its time that our elected representatives take out their money bag from the undergrounds and begin repaying the state for their own accrued debts.

Inland says:

February 3, 2009 at 11:10 pm

Ralph is right. Every election turns up more and more state bond measures. Not to mention that the state’s bond rating has been dinged numerous times the past 10 years. At some point you have to off the mountain of IOU’s. Receiving the country’s lowest credit rating is a dubious distinction, but one that was bound to happen.

teresa says:

February 4, 2009 at 10:31 am

Boxer,Feinstein,Villalagorsa GET OUT!

Bob Holtz says:

February 4, 2009 at 12:47 pm

Can anyone spell, California junk bonds. Three million kids get a free lunch in California and no major illegal alien programs have been cut. By law we must provide an education and emergency medical and that’s it. I think we haven’t started cutting the budget.

John L says:

February 12, 2009 at 9:32 pm

There is a reason for this all…Buckle up, and get ready for AMERO DOLLAR! Divide and CONQUER! I HATE, and I mean HATE illegal aliens…I remember the cardboard cities of Tijuana in the 60’s and 70’s, anything here is better than that for them, and they are here to keep AMERICANS from uniting and fighting back! They have us so watered down with immigrants, what Thomas Jefferson said about it being our responsibility to take a government like what ours has become back by force is IMPOSSIBLE! TOO MANY IMMIGRANTS!!! Do you the powers that be allow MILLIONS to come yearly for the economy! Then there the ten kids they each have, then those ten each have ten…Were doomed,
I am leaving for Europe…

Josie M. says:

February 16, 2009 at 12:05 pm

Sorry John L., Europe has illegal “aliens” too! And guess what, in case that you didn’t remember, you’re a decendent from immigrants too, who knows whether they were legal? There’s just no escaping, isn’t that a pity? Who knows whether they are going to want YOU in Europe, I hope they won’t!

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