March 5 Moody's assigned an A1 rating on California's $1.6 billion general obligation bonds, citing the state's volatile tax revenue structure and governance issues.
The rating agency also said its outlook on California is stable, based on the state's balanced economy and finances.
Moody's added that the state's recent revenue surge has strengthened its financial position and changes in its governance have led to three years of on-time budget passage.()
California will sell an estimated $1.6 billion of general obligation bonds next week, consisting of $900 million of new bonds and $700 million of refunding bonds, a spokesman for the state treasurer's office told Reuters on Wednesday.