The rating is called SP1+…and it's good news for California. But before you get too excited…
Petek: "It doesn't mean that the state has solved its longer term more structural budget problems."
That's S&P analyst Gabriel Petek. Instead, he says the rating means the agency believes California has more than enough money to pay back $10 billion in short term bonds.
Petek: "We have a low bond rating on the state's general obligation bond…but these are sort of like, can be kind of thought of like a payday loan."
Meaning the state knows it will collect the bulk of its revenue later in the fiscal year - just like that future paycheck - but expenses come earlier.