Moody’s Investors Service has dropped Juneau County’s rating to A2 from A1 due to a weakened general fund and a negative balance in its health services fund. The downgrade affects $12.4 million of outstanding general obligation debt.
“The A2 rating incorporates the expectation that the county’s rural $2.1 billion tax base will remain relatively stable, following a 3.6% decline in its equalized value in 2009,” according to Moody’s.
“The inability to produce structurally balanced operations and maintain reserves at adequate levels in both the general and human services funds could result in further negative rating action going forward,” analysts wrote.
