DALLAS — Moody’s Investors Service has shifted its outlook on Dallas’ Aa1 rating to negative based on the city’s weakening economy and narrowing budget reserves, the agency said.

The change in outlook is the first rating action since Moody’s downgraded the city from Aaa in June 2003. A negative outlook could precede another downgrade, or the city could return to stable if conditions improve over the next year to 18 months.

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