What I Learned Today - California's the worst..

8th July 2009

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California’s the worst..

..according to Fitch, one of the big three ratings agencies (S&P, Moody’s, & Fitch - the guys that rank businesses based on their ability to pay back loans), who has downgraded the state’s credit rating to a BBB. That’s only two steps above junk status.

California is now the only state with less than an A- rating, ranking it the lowest in the nation. That’s because it has a $26.3 billion budget deficit, they can’t agree on how to fix it, and they started issuing IOUs to pay the state’s bills. You can follow the efforts through Arnie’s twitter, where on July 1 he updated, “Instead of working on budget, the Legislature is about to debate whether cows can keep their tails while we’re in a fiscal crisis.” He was referring to a bill that was passed last week that prevents tail docking on cows. At least they can agree on that.

Tagged: california