NEW YORK, Feb 14 (Reuters) - Moody's Investor Service said on Thursday that its outlook for the U.S. states sector remains negative for the sixth year in a row despite signs of stabilization of the economy.

'Expenditure pressure from budget drivers such as Medicaid and pensions has not abated, and the continued threat of federal deficit reduction actions presents a risk to economic growth,' the rating agency said in a report.

Moody's, whose median state rating is Aa1, said that default risk for the sector remains 'very low'.

(Reporting by Tiziana Barghini; Editing by James Dalgleish) Keywords: MUNICIPALS STATES/MOODYS

(Tiziana.Barghini@thomsonreuters.com)(+1-646-223-6312)(Reuters Messaging: tiziana.barghini.thomsonreuters.com@reuters.net)

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