Standard & Poor's said in a report Wednesday it has assigned an SP-1-plus to California's $10 billion revenue anticipation note sale scheduled for the week of Aug. 13.
Standard & Poor's said the rating reflects its belief the state will retire the Rans when they mature in June 2013, with one series potentially maturing in May 2013.
Standard & Poor's said the state has the capacity to absorb a variety of potential cash-flow problems and still be able to repay the notes.
California regularly borrows money by issuing Rans in the late summer or early fall to help balance out tax receipts that come in stronger later in the year.
Standard & Poor's said the state's projected cash flows do not assume any cash benefit from "some less-certain budget measures" that are used to close its projected deficit.
At the end of June, Gov. Jerry Brown signed a $91.3 billion general-fund spending plan that closed an estimated $15.7 billion deficit.
The budget relies on voter approval of a tax initiative on the November ballot to raise an estimated $5.5 billion of revenue.
The measure would temporarily increase California's sales tax by a quarter-cent and raise taxes on income starting at $250,000. If that fails, the axe will fall on education, due to "trigger cuts."
Standard & Poor's and Fitch Ratings both rate California's GO bonds A-minus, two notches lower than Moody's Investors Service's A1.
Standard & Poor's has a positive outlook on the state, while Fitch and Moody's have it at stable.