SAN FRANCISCO — California should be able to handle the potential loss of hundreds of millions of dollars in projected tax revenue from a depressed Facebook stock price, according to Moody's Investors Service.

"A loss of hundreds of millions in revenue would equal less than 1% of the state's $91 billion budget," Moody's analyst Emily Raimes said in a report Monday. "Given that California has faced mid-year budget gaps of tens of billions of dollars in recent years, we expect a gap of this size opening in the middle of the year to be manageable for the state."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.