S&P; Lowers New York’s Credit Rating : Bonds: The downgrade gives the Empire State debt the second-lowest rating in the nation.

Standard & Poor’s on Monday lowered its rating on a broad range of New York State debt, citing the state’s “chronic” budget problems.

It was the state’s second downgrade this month by a leading credit-rating firm. Last week, Moody’s Investors Service dropped its opinion on many New York state bonds.

Monday’s downgrade of New York State’s general obligation bonds left the state with the second-worst rating in the nation.

Standard & Poor’s dropped the rating on the New York state bonds to “A-” from “A.” Only Massachusetts, with a “BBB” rating, ranks lower.

The S&P; action was the latest blow to a state government that’s amid a fourth year of major budget deficit woes and facing what looks like a fifth year of serious fiscal problems.

A lower credit rating can mean higher interest costs for taxpayers when the state borrows to build highways, prisons or other public projects. Gov. Mario Cuomo said, for example, that he wasn’t sure the state could continue to use state Urban Development Corporation bonds to finance prison construction.

Cuomo told reporters that he didn’t think there was a good rationale for lowering New York’s credit rating. “The notion that this suggests that maybe you won’t pay your debts is a joke when it comes to New York,” he said.

Standard & Poor’s said the $4.8 billion in bonds affected by the downgrade would include those issued by the state’s Job Development Authority, the Thruway Authority and the Port Authority of New York and New Jersey, among others. S&P; also said that as a result of its action, the bonds of local school districts were being placed on “CreditWatch.