Moody's Investors Service said it has downgraded the city of Lawrenceburg, Tenn.'s general obligation rating to A2 from A1.
The downgrade affects $59 million in outstanding general obligation debt including the current offering.
Moody's assigns an A2 rating to the city's $3 million general obligation refunding bonds, Series 2013.
The bonds are general obligations of the city, secured by an unlimited pledge of ad valorem taxes. The bond proceeds will fund various capital improvements.
The downgrade to A2 from A1 was driven by a high debt burden, high taxpayer concentration and reliance on general fund reserves to fund capital, which have resulted in six consecutive operating deficits. The A2 rating also reflects a small tax base with below-average wealth levels, high unemployment and adequate financial position.
