SAN FRANCISCO — California’s deteriorating budget may trigger a downgraded bond rating, according to Fitch Ratings, which placed the state’s A-plus rating on negative watch late Monday.

“The action reflects California’s widening structural budget and cash flow imbalances as the state’s economy slows largely due to the housing slowdown,” the agency said in a news release.

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.