SAN FRANCISCO — Standard & Poor’s said California’s midyear budget cuts are a credit positive, but its efforts to improve its budget through those cuts could be undermined if the cuts are thwarted.

Standard & Poor’s said it views the state’s use of “trigger” cuts as part of the budget as favorable for its credit quality because it likely helps reduce the size of the deficit next fiscal year. It rates California A-minus.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.