California’s cities will remain fiscally challenged for the next few years due to rising pension costs, continued revenue raising restraints, and the slow economic recovery, according to Moody’s Investors Service.

The agency said it has cut the ratings on 27 cities out of the 95 it rates in California since October, when it began a review following the bankruptcy filings of Stockton and San Bernardino. The downgrades included four general obligation and 23 revenue-backed ratings, Moody’s said in a report released Tuesday.

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