Declining Tax Revenues Cause California to Lose Credit Rating

Credit terminated.

Rapidly declining sales tax revenues: if it happens in California, it is likely happenning everywhere.

Facing a $24B budget deficit (at least!) for the new fisal year, Fitch Ratings, lowered the general obligation bond rating of the US' largest bond seller one notch to "A"-minus from "A."

The rating was also immediately placed on negative credit watch. California. State Controller John Chiang said Wednesday the state will start issuing IOUs for all general fund payments except those categories protected by the state constitution, federal law and court decisions.