SAN FRANCISCO — Fitch Ratings Thursday downgraded California’s general obligation bonds to A-minus from A, as the state’s budget crisis continued to play out amid legislative negotiations and gubernatorial veto threats.

The downgrade “is based on the magnitude of the state’s financial and institutional challenges and persistent economic and revenue weakening,” according to a news release from Fitch, which also placed the credit on negative watch. Previously, it had assigned a negative outlook.

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