Poughkeepsie, N.Y., Downgraded to Baa2 by Moody's

Moody's Investors Service said it has downgraded to Baa2 from A2 the city of Poughkeepsie, N.Y.'s $53.4 million in outstanding rated debt.

The outlook remains negative.

All of the affected debt is secured by the city's unlimited ad valorem property tax pledge.

The downgrade to Baa2 reflects the city's negative financial position, expected to remain negative in the near term, a moderately sizable tax base with below average wealth levels, and a high debt burden.

The negative outlook reflects the city's significantly pressured financial position marked by consecutive operating deficits, ongoing structurally imbalanced general fund operations, and narrow liquidity position.

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