SAN FRANCISCO - Standard & Poor's downgraded Mendocino County, Calif.'s issuer credit rating to BBB-plus from A-minus late last week, citing weak reserves, likely state budget cuts, and a failure to cut spending to match declining revenues.

The agency also downgraded the county's certificates of participation to BBB from BBB-plus. The county had about $122.1 million of debt outstanding as of June 30, 2008, including $92.2 million of general obligation bonds and $26.2 million of COPs, according to its audited financial report for fiscal 2008.

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