SAN FRANCISCO Jan 31 California's general
obligation bonds could be on track for further positive ratings
actions from Standard & Poor's, an analyst at the rating agency
said on Thursday after it upgraded the debt one notch to A.
S&P Senior Director Gabriel Petek told Reuters there is the
potential for further upgrades to the state's GO debt and
positive revisions to its stable outlook if state officials
seize on improving revenue and the state's economic recovery to
help swing the state budget to a surplus.
Following through with fiscal discipline urged by Governor
Jerry Brown would also be seen as a positive as it would help
the governor's goal of reaching a budget surplus, Petek said.
The most populous U.S. state's finances have long been
plagued by deficits. Brown has proposed that state officials use
new revenue from voter-approved tax increases to bolster the
state's finances while restraining spending to help swing the
state budget to a surplus.