SECURITIES

California’s AA Rating Remains Under Pressure: California’s AA bond rating will remain under pressure for a long time, buffeted by budget decisions made this year and aftershocks from the U.S. economic recession, Moody’s Investors Service said. California’s ability to maintain its rating will depend on how legislators manage the state’s cash and whether the state’s budget is kept in balance, Moody’s analysts said. State officials are considering options for meeting cash needs over the next six to nine months, including a possible sale of notes in April. To retain a high-grade credit rating, California must restore balance to its financial operations through spending cuts, revenue enhancements or both, Moody’s said.