Moody's Investors Service said it has assigned a rating of Aa3 to the state of California's upcoming sale of $1.2 billion general obligation bonds.
The bonds are expected to be sold on November 13, with the following series names and par amounts: various purpose general obligation bonds ($630 million); various purpose general obligation refunding bonds ($300 million); and federally taxable various purpose general obligation bonds ($270 million). The outlook is stable.
The Aa3 reflects the state's rapidly improving financial position, high but declining debt metrics, adjusted net pension liability ratios that are close to the state median, strong liquidity, and robust employment growth.
The Aa3 rating also reflects the state's volatile tax revenue structure and governance restrictions, in addition to certain recent governance changes and proposals that are meant to address those longstanding issues.
