9. California
USA’s largest state has a budget gap of 24 billion dollars and needs another 2,8 bln dollars to deal with urgent expenses.
The State of California faces a probability of default of 27.75% and a CDS spread of 363.32 basis points. California is thus replacing Romania in CMA ranking. Earlier this month, Romania had a sovereign default risk of 25.4% and a 5-year CDS spread of 390 bp. Although CDS spread were higher for Romania, the probability of defaulting on their sovereign debt took precedence in the ranking.
The State of California faces a probability of default of 27.75% and a CDS spread of 363.32 basis points. California is thus replacing Romania in CMA ranking. Earlier this month, Romania had a sovereign default risk of 25.4% and a 5-year CDS spread of 390 bp. Although CDS spread were higher for Romania, the probability of defaulting on their sovereign debt took precedence in the ranking.