Fitch Ratings said it upgraded the rating on $76.4 billion in outstanding general obligation bonds of the state of California to A-plus from A.
Fitch also assigned an A-plus rating to the state's $790 million various purpose GO bonds and $1.11 billion various purpose GO refunding bonds.
The bonds will be sold via negotiation on March 5.
The rating outlook is stable.
General obligations, for which the state pledges its full faith and credit, subject to the prior application of moneys to the support of public education; funds for education represent approximately half of state spending.
The upgrade is based on continued improvement in the state's fundamental fiscal position. Institutionalized changes to fiscal operations in recent years, when combined with the ongoing economic and revenue recovery, have enabled the state to materially improve its financial position, enhancing its ability to address future fiscal challenges. Progress includes timely, more structurally sound budgets, spending restraint, continued sizable reductions in budgetary debt, and initial funding of reserves.
