Spotlight: Investors Service Upgrades State’s Debt Rating

The state’s $17.8 billion in general obligation bond ratings were boosted one notch by Fitch Investors Service Inc., as California’s finances continue to strengthen amid a recovery. Fitch said it raised its rating on California’s debt to AA- from A+. The upgrade was in part because employment has picked up, helping income tax revenue. The upgrade comes as the state prepares to sell an additional $1 billion in bonds next week, which will allow California to borrow at lower interest rates.