CalSTRS’ long-term issuer credit rating was lowered by Standard & Poor’s to AA- from AA, the rating agency said in a statement.
The decline is directly related to S&P’s action on Feb. 3 to downgrade California general obligation bonds to A- from A, David Hitchcock, S&P credit analyst, said in the statement. S&P’s criteria for rating a public pension fund limits its rating to no more than three notches higher than the general obligation bond rating of its government sponsor.
Officials at the $132.6 billion California State Teachers’ Retirement System, West Sacramento, were unavailable for comment. The pension system was closed today.
