...The 'AA-' lease revenue bonds rating, one notch below California's Issuer Default Rating (IDR) of 'AA', reflects the slightly higher degree of optionality associated with appropriation-debt payments. California's 'AA' IDR and general obligation (GO) bond rating incorporate adequate financial flexibility and a large, diverse economy supporting strong, albeit volatile, revenue growth prospects, solid ability to manage expenses through economic cycles, and moderately low long-term liabilities. California's ability to actively mitigate budgetary liabilities and rebuild dedicated operating reserves remains a salient rating consideration....
