If the initiative passes, Standard & Poor’s has stated that the rating firm may raise California’s rating. California currently has an investment-grade A rating, its sixth-highest grade and the best since January 2010. Nevertheless, S&P remains cautious about the state’s finances.

“We continue to closely watch the state’s revenue performance relative to budget projections,” Gabriel Petek, an S&P analyst, said in the article. “California’s fiscal conditions are notorious for their ability to turn on a dime.”

Moody’s Investors Service raised California’s rating to Aa3 in June, the fourth-hghest grade and highest since 2011. [California Muni Bond ETFs Look Golden]

For more information on California munis, visit our California category.

Max Chen contributed to this article.