WASHINGTON - Standard & Poor's Corp. affirmed the ratings on California's $2.8 billion of lease securities late Tuesday, citing the state's extraordinary effort to make timely payment on most of the securities earlier this month despite its budget impasse.

"S&P concluded that default risks are adequately reflected in the current ratings," which underwent a series of downgrades earlier this year, the rating agency said. Its action leaves 16 of 30 lease issues just above junk bond levels at BBB-plus, with the balance retaining their A-minus ratings. Most of the issues are for universities, community colleges, and prison facilities.

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