July 13 (Reuters) - Ratings agency Moody’s Investors Service cut its rating by a notch on Alaska to “Aa3” and maintained its negative outlook on the state.
"The downgrade reflects the state's ongoing structural budget imbalance, a small economy with concentration in energy production, large fixed costs, and heavy pension burden," Moody's said on Thursday. (bit.ly/2tkR2jx)
The negative outlook incorporates the large structural imbalance that Alaska has still not rectified, and the ongoing spending of the state’s reserves, the rating agency said. (Reporting by Rishika Sadam in Bengaluru; Editing by Amrutha Gayathri)