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| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
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| Bonds Online |
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| 5/10/2013Market Performance |
| Municipal Bonds |
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S&P National Bond Index
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3.00% |
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S&P California Bond Index
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2.96% |
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S&P New York Bond Index
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3.13% |
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S&P National 0-5 Year Municipal Bond Index
|
0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| Income Equities: |
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| Preferred Stocks |
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S&P U.S. Preferred Stock Index
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848.03 |
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S&P U.S. Preferred Stock Index (CAD)
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636.26 |
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S&P U.S. Preferred Stock Index (TR)
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1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
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1,276.26 |
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| REITs |
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S&P REIT Index
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174.07 |
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S&P REIT Index (TR)
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425.30 |
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| MLPs |
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S&P MLP Index
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2,469.58 |
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S&P MLP Index (TR)
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5,428.50 |
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See Data
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California's Bonds Rated 'A+' On Large, Diverse Economy, S&P |
NEW YORK Feb. 25, 2008--Standard & Poor's Ratings Services assigned its 'A+' rating to California's $1.75 billion various-purpose GO bonds and affirmed its 'A+' underlying rating (SPUR) on the state's outstanding GO debt. The outlook is stable.
The rating reflects California's large and very diverse economy; its small, but positive, unreserved GAAP general fund balance as of fiscal year-end 2006, the last audited year; and its rising overall net tax-supported debt levels, though debt currently remains at moderate levels.
Offsetting factors include California's history of uneven financial operations; its persistent structural deficit when excluding onetime budget items, such as $3.3 billion of deficit financing bond proceeds in fiscal 2008; and state constitutional structural impediments that hamper budget consensus and have often led to late budget passage.
"The state will likely have to make politically difficult budget adjustments to maintain positive budgetary reserves in fiscal 2009 and could see a return to a deficit fund balance position again in the near future," said Standard & Poor's credit analyst David Hitchcock. "We expect that state fiscal year-end fund balances will remain low or slightly negative and that the state will take realistic budget balancing action in fiscal 2009 and beyond."
Despite displaying high employment diversity, the state's economy of 37.8 million people is experiencing a current slowdown. Although employment increased a respectable 1.3% in 2007, on a preliminary basis, the unemployment rate recently rose to 6.1% in December 2007, largely as the result of recent downturns in construction. Single-family detached residential home sales decreased more than 33% in 2007. New residential permits were off 35% in 2007 and median home prices were down 16.5%. The slowdown led the governor to project a combined fiscals 2008 and 2009 cumulative budget gap of $14.5 billion in his January budget proposal (about 14% of projected 2009 expenditures), although this gap was somewhat artificially increased by the inclusion of about $1.5 billion of non-required advance debt retirement. The state projects revenues in fiscal 2008 will be $4.2 billion lower than originally budgeted, offset by $3.3 billion of deficit bond proceeds and various midyear cuts and transfers recently enacted in a special session of the legislature.
The rating action affects roughly $43 billion of outstanding GO debt, not including double-barreled sales tax/GO secured debt.
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| Stuff to look at |
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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