Amid a budget standoff between the Republican governor and the Legislature, the outlook on Arizona’s AA rating was placed on Standard & Poor’s CreditWatch for a possible downgrade last week.

The shift to negative from stable was attributed to lower-than-anticipated tax collections and the failure of Gov. Jan Brewer and legislative leaders to cover a shortfall in the current budget. After seven weeks in special session, the Legislature last week again sent Brewer a budget bill without the temporary sales tax increase she demanded to raise additional ­revenue.

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