-->California Bond Rating Cut by Moody's Over Budget Stalemate
Dec. 9 (Bloomberg) -- California, which already has the lowest credit assessment among U.S. states, had its rating cut one level by Moody's Investors Service because of the state's lack of progress in agreeing on a deficit reduction plan.

Moody's downgraded California's general obligation bonds to Baa1, the third lowest of 10 investment grades, from A3. The state's operating budget backs about $30 billion in general obligation bonds.