COLUMBIA, S.C. (AP) - A month after South Carolina lost its AAA credit rating with Standard and Poor's Ratings Services, another agency has affirmed the top-tier rating.

Moody's Investors Service on Friday issued a AAA rating, but gave the state a negative outlook. The agency said that, while the state's economy is improving, South Carolina faces future problems because of a weak manufacturing sector and increasing costs for education and health care.

Last month, Standard and Poor's issued an AA-plus rating, saying the state is not generating enough jobs and its unemployment rate is too high.

Moody's said the state's economy still is not strong, mostly because of the reliance on textile manufacturing. That industry makes up about 7.8 percent of South Carolina's employment base, compared with 4.3 percent nationally, according to the report.

Manufacturing job losses were primarily responsible for a drop in state employment, the report found.

While the state's economy remains flat, state revenues are increasing, said state Comptroller General Richard Eckstrom.

"I regard the increasing revenues as a very clear sign that the economy is growing," Eckstrom said. However, "our unemployment rate is still stubbornly high."

South Carolina's jobless rate in June - the latest figures available - was at 6.3 percent. Nationally, the rate is 5 percent. South Carolina had the nation's sixth-highest unemployment rate.

Still, the credit agency said there has been some growth in durable manufacturing, as well as growth in the automotive industry.

Moody's also credited the South Carolina Legislature with taking action to address economic problems. Lawmakers have passed legislation to eliminate an operating deficit, restore reserves and control expenditures, the report stated.

"While we've gotten a AAA rating from them, we shouldn't be jumping for joy," said Trav Robertson, spokesman for state Treasurer Grady Patterson. "We still have to deal with economic pressures in South Carolina."

Robertson said the state needs to address the rising costs of education and health care and must be sure to adequately fund the state Commerce Department to help bring in additional jobs.

House Speaker Bobby Harrell said the General Assembly would work with Commerce next session to determine what tools they need, whether it's additional people or additional incentives to recruit businesses.

The report confirms that to shore up the state's financial future, the economy must be stimulated to help people keep more of what they make and the rate of government growth must be slowed, said Joel Sawyer, spokesman for Gov. Mark Sanford.

Next year, the governor will work to pass an amendment to create a constitutional cap on spending to address those issues, Sawyer said. The cap would limit new spending to an amount determined by population and inflation. Any excess would go into a special fund designated for taxpayer relief, provided there is no shortfall, Sawyer said.

Sanford wants to let voters decide on the cap in 2006.