California Ready for Raws

Finestone, Deborah
May 2003
Bond Buyer;5/27/2003, Vol. 344 Issue 31643, p1
Trade Publication
This article reports that California state will receive tier-1 credit ratings on its upcoming $11 billion sale of revenue anticipation warrants (RAW) expected to price on June 11, 2003. The warrants will be sold in two series, each backed by forward purchase agreements with a subset of the seven investment banks that will provide credit enhancement on the deal. The forward purchase agreements obligate the banks toredeem the notes if necessary, a stronger credit arrangement than was provided for the state's Raw sale in 2002. A failure to garner top-tier ratings could complicate the huge sale of short-term debt that is expected to provide the strapped state with badly needed cash.


Related Articles

  • Issuer Credit Ratings and Warrant-Pricing Errors. Chen, Ming-Hsien; Gau, Yin-Feng; Tai, Vivian W. // Emerging Markets Finance & Trade; 

    This paper examines how issuer credit relates to the level of warrant-pricing errors in Taiwan. The results demonstrate that the premia of warrants with high credit ratings have fewer pricing errors, implying that warrants with higher credit ratings are more fairly priced in terms of the...

  • Spanish borrowing costs drop as sentiment rises. Jackson, Gary // Fundweb;8/21/2012, p6 

    The article reports that financial investors lend money to Spain at cheaper rates. It mentions Spain has sold 4.51 billion euro of short-term debt. According to the European Central Bank president Mario Draghi, his bank could restart its bond-buying programme in an effort to help stabilise...

  • Short-Term Debt Maturity Structures, Credit Ratings, and the Pricing of Audit Services. Gul, Ferdinand A.; Goodwin, John // Accounting Review;May2010, Vol. 85 Issue 3, p877 

    Short-term debt and credit ratings have benefits for financial reporting quality that may be associated with lower audit fees. Using U.S. data for 2003 through 2006, we find that short-term debt is negatively related to audit fees for firms rated by Standard & Poor's, consistent with more...

  • Brown's GO Revise Stretches Market. Jensen, Randall // Investment Dealers' Digest;5/20/2011, Vol. 77 Issue 19, p7 

    The article offers information on the budget plan of California Governor Jerry Brown to revise and stretch the tight credit rating of the state. Accordingly, Brown has released a revised budget plan that would reduce bond issuance and sales to curb overall borrowing of the state. However,...

  • Global banks win favour with ratings advice.  // MEED: Middle East Economic Digest;2/7/1997, Vol. 41 Issue 6, p6 

    Reports that investment banks in the Middle East are receiving favorable credit ratings. Sovereign rating received by Egypt granted by Standard & Poor's of the United States; List of banks that provide ratings advice; Objective of banks to build long-term relationships with countries where...

  • S&P Downgrades DEPFA Bank to A-plus. Hanson, Matthew // Bond Buyer;7/24/2007, Vol. 361 Issue 32677, p1 

    The article reports on the downgrade of DEPFA Bank PLC's ratings on its long-term debt to A-plus from AA-minus and on its short-term rating to A-1 from A-1-plus, by Standard & Poor's Corp. The rating agency cited concerns on an announcement that DEPFA would be acquired by Germany-based Hypo Real...

  • Rating Agency Thinks Corporate Seconds Are Largely Unsecured. Cornwell, Ted // National Mortgage News;10/25/2004, Vol. 29 Issue 7, p54 

    This article reports that while second-lien lending growth is being fueled by low default rates and strong investor demand in the corporate debt market, the loans may not be as well secured as investors think. Standard & Poor's Corp.'s vice president for loan rating, Steven Bavaria, said that...

  • S&P Deals California Harsh Hand. Ward, Andrew // Bond Buyer;12/12/2008, Vol. 366 Issue 33022, p1 

    The article reports on the lower credit ratings given by Standard & Poor's Corp. to California's short-term credit rating to -2 from -1 and placed $53.8 billion of long-tern debt on negative Creditwatch. According to analyst David Hitchcock California is pressured by the sharp declines in...

  • Michigan Readies $1.1 B of Notes in a Now-Familiar Move. DEVITT, CAITLIN // Bond Buyer;10/25/2010, Vol. 374 Issue 33404, p28 

    The article reports on the issuance of 1.1 billion dollars of short-term debt by the Michigan Government to cover cash-flow shortfalls in its two main funds, the general fund and the school aid fund.


Read the Article


Sign out of this library

Other Topics