New York Gov. David Paterson again raised the spectre of a downgrade yesterday as he cajoled legislative leaders to take action to cut a $3 billion current-year budget deficit. The state faces a serious cash-flow problem in December that could affect its rating if nothing is done, he said.
“We could come into difficulty with our credit rating within the next six weeks,” Paterson said at a meeting in Albany. “We’ve got to address our issues before we start to fail to meet obligations, have a downgraded credit rating, and go to places that this state does not want to go.”