DALLAS – A severely underfunded pension plan continued to weigh heavily on Dallas as Moody's Investors Service dropped the city's credit rating one notch to Aa3 and maintained a negative outlook.

The action Friday came a week after Fitch Ratings lowered the city's rating to AA from AA-plus, also keeping the outlook negative. Moody's also downgraded Dallas one year ago, as did S&P Global Ratings, citing the pension problems as the key factor.

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