Improve the bond rating by addressing each concern of the major bond rating services and working with the Legislature and Governor to address these concerns.
The State of California current bond ratings are one of the lowest in the nation. Since 1986 California's General Bond Rating has declined from AAA to single A.
In Atherton, a small town located in Northern California where Conlon is Chairman of the Finance Committee, the town is expressly prohibited from purchasing California bonds with its excess cash on-hand. The Town's investment policy only allows investments in AA bonds while California has only Single A bond ratings for its bonds.
This is a disgrace that a city or town residing in the State is prohibited by its prudent investment policy from buying its own state's bonds because of its weak bond ratings.
Conlon will work with all three rating agencies, Standard and Poor's, Moody's and Fitch to determine why and what the State needs to do to improve its bond ratings to at least a AA- rating or equivalent.
Conlon, with his financial background as a businessman and CPA, is well equipped to understand the task to improve the bond ratings and work with the Governor's Office and the legislature to take the necessary action to improve the ratings. There is no excuse for California to have such a low rating.
|
