Ratings agency gives thumbs up to California
Wall Street continues to look favorably on California’s financial progress.
On Monday, Fitch became the latest ratings agency to issue a positive report about the state, citing “fiscal management improvements” and “two successive years of structural budget progress.”
The kind words did not come with a rating bump, but Fitch said an upgrade could come in the near future.
“The economy is wealthy and unmatched among U.S. states in its diversity and breadth,” the report said. “After severe, widespread recessionary conditions, growth has resumed, including in California’s housing market.”
Like other agencies, Fitch cautioned that California still faces other financial challenges, including a heavy debt load and the difficulty of restraining spending.
“California’s credit standing is likely to remain lower than most states for the foreseeable future given the magnitude of the state’s budgetary and financial challenges,” the report said.
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Twitter: @chrismegerian
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