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Pennsylvania’s Credit Rating Cut by Moody’s on Budget

Pennsylvania’s general-obligation rating was cut one step by Moody’s Investors Service, which said this year’s budget depends on one-time revenue fixes while rising pension costs will limit the state’s finances.

The reduction to Aa3, the fourth-highest grade, affects about $13.1 billion in debt, the company said. Pennsylvania has a “growing structural imbalance,” Moody’s said in a release.