LOS ANGELES -- The outlook for U.S. states is negative for the sixth year in a row, as they continue to face challenges from the economic and fiscal environment, Moody’s Investors Service said Thursday.

Analysts said that, despite signs of economic stabilization, employment and tax revenue growth are still uneven across the states. They also noted the continued threat of federal deficit reduction plans, pre-recession level reserves, and remaining spending pressures as factors in the sector’s outlook.

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