SAN FRANCISCO — Moody’s Investors Service Wednesday downgraded Sacramento County’s issuer rating to A2 from A1, citing “major financial challenges” in the coming year, including an unbalanced budget and a large letter-of-credit portfolio facing rollover.

The outlook remains negative. “The negative outlook is predicated largely on its inability to achieve structural balance in recent years, which does not bode well for the coming one,” Moody’s said in a news release.

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