Moody's Investors Service said it has downgraded to A2 from A1 the rating on the city of Spring Valley, Minn.'s general obligation debt.
The city has $5.5 million of outstanding general obligation debt, $1.9 million of which is Moody's-rated.
The city's outstanding bonds are secured by its general obligation unlimited tax pledge, although debt service is paid from a variety of sources, including special assessments, tax increments, and enterprise revenues.
The downgrade to A2 reflects the city's overall credit fundamentals, including its small tax base, below average demographic profile, healthy financial position despite a high dependence on state aid, and above average debt burden.
