July 21 (Reuters) - Moody’s Investors Service downgraded its rating on Pennsylvania’s general obligation bonds to Aa3 from Aa2, citing underperforming revenues and the continued use of one-time measures in the state’s budget.
The ratings agency also said that growing pension liabilities coupled with modest economic growth would limit Pennsylvania's ability to regain structural balance in the near term. (bit.ly/1u8mG2C)
Moody’s said its outlook on the bonds was stable. (Reporting By Anjali Rao Koppala; Editing by Saumyadeb Chakrabarty)