California ranked lowest on bond rating in U.S.

All three major credit agencies in the United States have given California the lowest bond rating in the country, a report said Saturday, Xinhua reported.

According to the Sacramento Bee daily newspaper, Moody's Investors Service downgraded California's general-obligation bonds to A2 from A1 on Friday, following similar moves by Standard & Poor's and Fitch Ratings.

A worse rating means lower demand for the state's bonds and growing tax burdens for taxpayers as California prepares to sell 4 billion U.S. dollars in general-obligation bonds to help pay for hundreds of stalled public projects.

California previously was tied with Louisiana for the worst credit rating in the country.

Responding to the news, the spokesman for state Treasurer Bill Lockyer said that California bonds are still safe for investors, noting the state has not defaulted on past bond payments.

California, which has the largest economy in the United States, has been among those hit hardest by the current financial crisis and credit crunch.