S&P sees negative Ohio outlook

CINCINNATI (AP) — A major credit ratings agency has given Ohio’s credit a negative outlook.

Standard & Poor’s cites uncertainty over racetrack slot machines and the state’s need for their potential revenues to balance the budget. The state’s high court has blocked Ohio’s plans to use video lottery machines at horse-racing tracks while a group tries to get the issue on the 2010 general election ballot as a referendum.

The Wednesday S&P report dropped the outlook for Ohio to “negative” from “stable.” The agency still gives Ohio’s long-term bonds a high rating, saying the state has a long record of managing volatile budgets.

A spokeswoman for Ohio Gov. Ted Strickland says the outlook change underscores the need for a collaborative response to state budget challenges.