LOS ANGELES — Fitch Ratings analysts said Tuesday that while a decision by the California Public Employees’ Retirement System to lower its earnings forecast to 7.5% from 7.75% is positive for local government credit quality in the long term, it means added near-term budgetary pressure for struggling municipalities.

The CalPERS board’s decision on March 15 to reduce expected average annual returns on its investments comes at a time when several counties and cities have suffered tax-base stagnation and have little financial flexibility, Fitch said.

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