Standard & Poor’s has downgraded two cities’ gas tax-secured certificates of participation to A-minus from A, citing mid-year state budget cuts that will delay payments from the pledged revenue source. The outlook is stable.

Late last year, Oxnard and Santa Ana issued bonds secured by their share of future revenue from California’s 18-cent-per-gallon tax on gasoline, a portion of which is distributed to local governments based on pre-set formulas. The cities used the bond proceeds to accelerate their street improvement programs.

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