SAN FRANCISCO - Standard & Poor's downgraded Sacramento two notches late Monday, saying the city has a structurally imbalanced budget and no clear plan to close the gap in the near future.

The agency cut the city's issuer credit rating to A-plus from AA and dropped the rating on its lease revenue bonds, issued by the Sacramento City Financing Authority, to A from AA-minus. The outlook on the debt is stable. The downgrade affects about $521 million of general fund-backed debt.

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