Despite its recently adopted budget, California is still likely to face severe budgetary pressures, Moody’s Investors Service said Monday in its weekly credit outlook report.

The budget was adopted Oct. 8, 100 days into the start of the fiscal year, a record for lateness even by California’s lax standards.

“The bad news is that the budget relies heavily on one-time measures, optimistic revenue assumptions, and the receipt of funds, some of which may not materialize,” wrote analyst Emily Raimes. “As a result, it is likely that the state will face a large mid-year budgetary shortfall later this year and that the budget gap for next year will be significant, both of which will place continued credit pressure on the state.”

Moody’s assigns California general obligation bonds an A1 rating and stable outlook.

“As the economy improves and revenues strengthen, the state will have some relief from the large gaps it is experiencing today,” Raimes wrote. “But as the economic recovery is expected to be slower and shallower than those of the past, the state will have a more difficult time growing its way out of the current negative balances.”

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