SAN FRANCISCO (KCBS) - A top credit rating agency is expressing concern about California's ability to borrow $4 billion just days before the state heads out to market.
Standard and Poor's Ratings Services have placed California's bond rating on negative credit watch, citing concerns over the state's ability to access short-term financing.
Normally, the state has no problem selling notes to pay for operating expenses, but turmoil on Wall Street has put a squeeze on the credit market.
State officials say they remain optimistic they can sell $4 billion worth of notes next week.
Governor Arnold Schwarzenegger has been featured in recent ads, urging Californians to buy the notes.
(pbo)
