Power Woes Lead to California Downgrade

The state's credit rating was cut as the costs of its electrical power crisis mount

On Apr. 24, Standard & Poor's lowered the rating on the state of California's General Obligation (GO) bonds to single-'A'-plus from double-'A'. The rating remains on CreditWatch with negative implications, where it was placed Jan. 19, 2001. Associated state appropriation-backed lease ratings are also revised, as well as those ratings for the California Health Facilities Construction Loan Insurance Fund (Cal Mortgage) that are secured by the full faith and credit of the state.

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