SAN FRANCISCO - California's continuing budget woes, and its pending need for an unprecedented cash-flow borrowing, could threaten the state's A2 rating from Moody's Investors Service, according to a special comment the agency released yesterday.

The comment, written by analyst Emily Raimes, comes in the wake of last week's report from the California Legislative Analyst's Office, projecting that the state will need a cash-flow borrowing for fiscal 2010 of at least $17 billion, and as high as $23 billion if the budget-related measures on the state's May 19 special election ballot fail, as public opinion pollsters are predicting.

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