Belleville, N.J., GOs Cut to Baa2 by Moody's

Moody's Investors Service said it has downgraded the Township of Belleville, N.J.'s rating to Baa2 from Baa1. The move affects $24.6 million in outstanding general obligation debt, secured by the township's unlimited-tax general obligation pledge.

According to the rating report, the downgrade reflects a material decline in the township's financial position in fiscal 2007 that remained at similarly narrow levels in fiscal 2008. Belleville's fiscal year ends Dec. 31.

Moody's analysts said the financial situation is not expected to materially improve in the medium term given a continued trend of structurally imbalanced operations, deferred charges, and limited revenue-raising opportunities.

The new Baa2 rating also factors the township's moderately sized, mature $3.65 billion residential tax base, its location 10 miles west of New York City, socioeconomic characteristics that are below average in the state, and a low debt burden.

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