OT:

Not good, not good, not good……

Monday, July 06, 2009
Fitch Cuts Calif. Long-term Bond Rating To ‘BBB’
Sue Chang
MarketWatch Pulse

SAN FRANCISCO — Fitch Ratings on Monday lowered California’s long-term general obligation bond rating to BBB from A- and kept the bonds on Rating Watch Negative. The downgrade is due to the state’s continued inability to achieve timely agreement on budgetary and cash flow solutions to its severe fiscal crisis, Fitch said. The Rating Watch Negative also reflects the short-term risk from a prolonged institutional impasse which could further aggravate the state’s severe economic, revenue and liquidity challenges and weigh on the state’s credit. BBB-rating is one grade above junk bond status.