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Standard & Poor's improves Calif. bond rating to positive; urges 'credible' budget solutions
SACRAMENTO, Calif. (AP) ' California's credit could be turning a corner.
Standard & Poor's on Tuesday improved California's bond outlook from stable to positive, a sign the state might be poised for a credit-rating upgrade if the Legislature continues to make spending cuts and tax revenue meets projections.
S&P analyst Gabriel Petek says California has corrected a significant portion of its budget imbalance.
The agency's report says a higher rating is contingent on sufficiently credible solutions to the state's $9.2 billion deficit. That would include automatic spending cuts that are not subject to changes after the November election, if voters reject Gov. Jerry Brown's tax hikes.
The last time the rating agency gave California a positive outlook was June 2007, when it had an A-plus rating. It now has a rating of A-minus.