Moody's Investors Service said it has downgraded to A2 from A1 the rating on Mount Holly Municipal Utilities Authority, N.J.'s sewer revenue bonds, affecting $12.97 million in parity debt obligations.
The bonds are secured by the gross revenues of the sewer system and from any amounts of annual charges payable by the township of Mount Holly under the service contract dated October 1, 1978. The rate exclusively reflects the credit quality of the sewer system.
The A2 rating reflects the authority's large service area encompassing all or part of six townships, satisfactory legal provisions, and satisfactory financial operations with narrow debt service coverage and healthy reserves.
