LOS ANGELES — Moody's Investors Service affirmed California's Aa3 rating ahead of a $1.9 billion general obligation bond sale slated for Aug. 26.
It also affirmed its stable outlook.
The state has over $91 billion in net tax-supported debt, according to the Aug. 17 Moody's report.
The state plans to price the general various purpose general obligation bonds in two series of $550 million in various purpose general obligation bonds and $1.35 billion.
Bond proceeds will be used to fund construction projects, pay some of the state's outstanding general obligation commercial paper notes, and refund outstanding bonds.
"The state's Aa3 rating 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," Moody's analysts wrote.
California has a population of 38.7 million and a gross state product of $2.3 trillion. It has a large and diverse economy, and relatively high wealth.
Moody's cited the stabilized economy and finances of the state for the stable outlook.
