Downgrade Expected To Have Little Effect On California
SACRAMENTO, Calif. (AP) -- State Treasurer Bill Lockyer says there's no reason the ratings downgrade of the federal government will have an immediate effect on California.
Lockyer issued a statement Monday saying the downgrade late last week by Standard & Poor's reflects the partisan gridlock in Washington. But he also cautioned that California needs to focus on improving its economy.
S&P analyst Gabriel Petek says the pressure to reduce federal spending could translate into less funding for health care programs such as Medicaid.
California and Illinois currently share the lowest state credit rating, but California has been on the mend in recent months.
Last month, S&P revised California's long-term ratings outlook from negative to stable after Gov. Jerry Brown signed a rare on-time budget. Moody's Investors Service also gave California a stable outlook.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
