Essex Fells, N.J., Downgraded to Aa3 by Moody's

Moody's Investors Service said it has downgraded to Aa3 from Aa2 the rating on the Borough of Essex Fells, N.J.'s general obligation bonds, affecting $5.7 million in outstanding rated debt.

The bonds are secured by the borough's unlimited property tax pledge.

Concurrently, Moody's has removed the rating from review. Moody's placement of the rating under review with direction uncertain on February 22, was prompted by a lack of audited fiscal 2011 financial information, which it have since received.

The downgrade reflects the borough's historical reliance on the fund balance to support structurally imbalanced operations, as well as protracted tax base declines beyond state trends.

The Aa3 rating also considers the borough's robust resident wealth levels and modest debt burden.

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