Standard & Poor's Ratings Services said it raised its ratings on various state of California general obligation (GO) refunding bonds series four notches to AA-plus from A.
At the same time, Standard & Poor's raised its long-term rating on California's $925.135 million series 2005 various purpose GO refunding bonds two notches to AA-plus from AA-minus. The outlook on all issues is stable.
"This action reflects our view of a defeasance of obligations through the deposit of cash -- to be held in a Federal Deposit Insurance Corp.-insured deposit account -- and U.S. Treasury obligations in an escrow fund on Oct. 7, 2014," said Standard & Poor's credit analyst Alexander North.
The bonds are due to be fully refunded at 100% of the redemption price plus accrued interest on either March 1, 2015, or June 1, 2015, depending on the bond series. The escrow agent is the California State Treasury.
"The stable outlook reflects the U.S. rating outlook," North added.
