Fitch gives AAApre to California refunded G.O. bonds

Fitch Ratings said it assigned an AAApre rating to the State of California's $287.51 million of general obligation bonds, refunded on Nov. 6, 2007 with proceeds of the state's G.O. refunding bonds.

The state treasurer holds an account in trust for the benefit of the refunded bondholders, and all funds and securities in that account are pledged irrevocably to pay principal, interest and any redemption premium on the refunded bonds when due.

The AAApre rating reflects that pledge and that all funds had been invested in direct non-callable obligations of the United States or of Fannie Mae.

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