NEW YORK Feb 28 Standard & Poor's said on
Thursday that the $85 billion in automatic spending cuts from
the federal budget that could become reality from Friday may
have only a minor negative impact for local governments.
The credit ratings agency said that most municipalities
since the beginning of the recession have shown willingness to
impose cutbacks in response to a weaker revenue environment.
"We expect them to be prepared for the possibility of
sequestration," Standard & Poor's said in a statement.
"States and many local governments have been actively
monitoring developments at the federal level, and we believe
they have evaluated the potential effects of sequestration in
their revenue forecasts and budgets," said S&P credit analyst