Moody's Investors Service said it has downgraded to A1 from Aa3 the rating on the township of Stafford, N.J.'s general obligation bonds, affecting $51.5 million in debt outstanding.
The bonds are secured by the township's unlimited property tax pledge.
The downgrade reflects Moody's expectation that the township's financial flexibility will be limited in the near-term due to budgetary pressure associated with Super Storm Sandy.
A1 rating also incorporates anticipated declines in Stafford's sizable tax base, above average resident wealth levels, narrowing but still adequate liquidity and reserves, and high debt burden.
