LOS ANGELES - Note ratings for many California issuers with remain high grade if they deal conservatively with current budget problems, but the outlook for longer-term credit quality is less certain, Moody's Investors Service said yesterday.

"In most cases, short-term ratings will prove resistant to erosion, in large measure due to the inherent structural strengths of the security, but due also to timely, if painful, management response to reduced resources," Moody's said in a credit report.

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