S&P Upgraded Ratings on the State of California

S&P revised California’s ratings outlook from Stable to Positive today, just in time before the state auctions its $2B general-obligation bonds. S&P affirmed the state’s A- long-term and underlying ratings on $73B of general obligation debt.S&P said that California would receive an even higher rating if the state’s revenue can come closer to the projected number in Governor Jerry Brown’s budget. Governor Brown is seeking for additional tax revenue sources, including a proposal that would raise personal income taxes on anyone with an annual paycheck of more than a quarter million dollars. California faced deep cuts in education in the past year, but the state is looking for ways to not cut this area further.