S&P Downgrades California Debt

Bloomberg reports:

California’s credit rating on $64 billion of general obligation bonds was cut by Standard & Poor’s today as the most-populous U.S. state faces renewed strains over how to close a $20 billion budget deficit.

Gabriel Petek, a San Francisco-based analyst who monitors the state for Standard & Poor’s, said the rating was lowered one level, to A- from A. He said the company has a negative outlook on California debt, a sign that its standing could decline further. The rating on other securities tied to the state, including bonds backed by leases, was reduced as well, he said.