System is not booting up after applying patches and audit.log shows 'avc: denied { setsched }' error

Issue

• System is not booting up properly, but it's booting in single user mode with no issue
• From the /var/log/audit/audit.log, it shows the below error messages a lot

type=AVC msg=audit(1390009110.905:7): avc:  denied  { setsched } for  pid=1139 comm="rsyslogd" scontext=system_u:system_r:syslogd_t:s0 tcontext=system_u:system_r:syslogd_t:s0 tclass=process
type=SYSCALL msg=audit(1390009110.905:7): arch=c000003e syscall=144 success=no exit=-13 a0=477 a1=0 a2=7f122e9d1d38 a3=7f122e9d19d0 items=0 ppid=1 pid=1139 auid=4294967295 uid=0 gid=0 euid=0 suid=0 fsuid=0 egid=0 sgid=0 fsgid=0 tty=(none) ses=4294967295 comm="rsyslogd" exe="/sbin/rsyslogd" subj=system_u:system_r:syslogd_t:s0 key=(null)

• Changing the run level to 3 with the below stuck in random services

$ init 3