NEW YORK, May 30 (Reuters) - Moody's Investors Service on Thursday cut Suffolk County, N.Y.'s general obligation rating to A2 from A1, affecting $1.4 billion of outstanding debt. The rating outlook remains negative. Moody's cited Suffolk's failure to meet projected fiscal 2012 year-end estimates and its use of non-recurring revenue adjustments to balance the fiscal 2013 budget as the reasons for the downgrade. The rating could be lowered again if the county fails to meet projections in fiscal 2013 and eliminate accumulated deficits in fiscal 2014, Moody's said. The wealthy county on Long Island to the east of New York City has a population of 1.5 million and a median household income of about $87,000, compared to $57,000 for the rest of the state. Suffolk, which includes the posh Hamptons beaches, declared a fiscal emergency in March 2012 after an independent task force predicted a 3-year deficit of $530 million. Fitch Ratings downgraded the county's GO debt to A from A-plus on March 25 because of concerns about the county's ability to become financially stable, let alone reduce its big deficit. Moody's said its outlook reflects a cumulative operating deficit of $530 million from fiscal year 2011 through 2013. That shortfall was driven by aggressive assumptions about sales tax collections and a failure to cut spending, the Wall Street credit rating agency said. "While the county has made significant steps toward mitigating the deficit since identifying it in March, future rating reviews will consider the county's ability to make further headway in reducing the structural gap and achieve structurally balanced operations," Moody's said.