S&P: Veto won’t affect California’s credit rating

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One of the nation’s leading credit-rating agencies said Friday that Gov. Jerry Brown’s historic veto of the budget plan approved by Democrats would not have an immediate, negative impact on California’s beleaguered credit rating.

Standard and Poor’s Ratings Services said in a Friday bulletin that “although the governor’s veto risks a protracted budget negotiation process that we believe could stress the state’s cash position, it is not clear to us that the budget package he vetoed would have averted cash problems.”

The state is not of out the woods with the credit-rating agencies yet. The possibility of “protracted budget negotiations” could “continue to exert downward pressure on the state’s credit rating,” the bulletin said.

-- Shane Goldmacher in Sacramento