Standard & Poor’s cut the underlying rating on Corte Madera’s certificates of participation to BBB-plus from A.

“The downgrade reflects our view of the town’s continued deficit spending in the general fund,” analyst Misty Newland wrote in a report. The Marin County town of 9,400 has experienced a rapid expansion of its general fund budget deficits from 4.2% of spending in fiscal 2007 to 12.8% in fiscal 2009, she said.

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