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California Debt Rating Raised by S&P After Surplus Forecast

California’s credit rating on its general-obligation bonds was raised by Standard & Poor’s for the first time since 2006 as tax increases championed by Governor Jerry Brown bolstered the state’s fiscal outlook.

The move by S&P affects $73 billion of debt and lifts the state’s credit grade one step to A, the sixth-highest level, according to the company. California’s outlook was moved to stable from positive, and the grade on $9.3 billion of lease-revenue bonds increased to A- from BBB+.