Citing California’s success in issuing $5 billion in short-term revenue anticipation notes last week, Standard & Poor’s on Tuesday removed the state government from negative CreditWatch, while the state treasurer’s office announced plans to sell $2 billion more in notes.
“The removal of the GO bonds from CreditWatch, in our opinion, is supported by the recent successful sale of $5 billion of Rans,” said the Standard & Poor’s release.
The agency affirmed its A-plus rating for California general obligation bonds, and its SP-1 short-term rating on the Rans. The outlook is stable on the GOs.
S&P placed California on negative watch Oct. 10 amid concerns about the state’s ability to sell notes during the market crisis, but strong retail demand buoyed last week’s $5 billion offering. The State treasurer’s office reportedly said yesterday that it plans to sell a final $2 billion in Rans for the current fiscal year in November.