PROVIDENCE, R.I. (AP) — Financial rating agency Moody's Investors Service is predicting a tough year for Rhode Island's cities and towns as the economic downturn continues to wallop the state.

Moody's Investors Service said in a report Monday that the state's municipal governments are experiencing economic weakness, revenue stagnation and pension expense growth that are more acute than the problems facing most other states. It said it expects "a continuing trend of downgrade activity" in 2012.

The report warned that Rhode Island faces a "higher probability" of a double-dip recession as its economic recovery lags behind the rest of the nation.

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