Moody's Investor Service says the State of Pennsylvania's latest bond rating represents a "below average financial position" amid "growing pension liabilities and moderate economic growth."

Moody's issued a Aa2 bond rating to the state government, noting that its "financial position and liquidity remain weak relative to its historic position."

Despite the below-average rating, Moody's says the state is financially stable.

"The outlook for the Commonwealth of Pennsylvania is stable, reflecting the expectation that the commonwealth's diverse economy has stabilized but will grown at a slower pace than the U.S. average," Moody's reports. "Additionally, modest revenue growth mitigated by improved governance, reflected in timely budget adoption and proactive financial management, will support a stable financial position despite the challenge of growing fixed costs."

The report credited Governor Tom Corbett's administration with submitting three timely budgets that focused on cutting spending rather than relying on financial gimmicks to fill budget gaps.