S&P affirms A- rating and negative outlook for California

Reuters

CHICAGO (Reuters) - Standard & Poor's Ratings Services on Monday affirmed California's A-minus general obligation rating with a negative outlook, but warned any ratings downgrade would likely be related to liquidity problems.

"The outlook on California's rating remains negative, mostly because of our view of the risk to the state's cash position in the coming months if state lawmakers are unable to reach the level of political consensus necessary to resolve the remaining projected budget deficit," the credit rating agency said in a statement.

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(Reporting by Karen Pierog, Editing by Gary Crosse)

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