Ratings Agency S&P Cautions Against More California Spending

The ratings agency Standard and Poor’s has a caution for California lawmakers interested in raising spending. “We think there’s a certain amount of risk out there that the state could go down a path that could undermine its current balanced budget position,” says Gabe Petek, a credit analyst with the agency. “That could undermine its credit quality in the future and lead to a lower rating.” Petek co-authored a report S&P released Monday. It echoes warnings by Governor Jerry Brown to limit spending.