Moody's Investors Service said it has downgraded the North Jay Water District, Maine's outstanding revenue bonds to Baa2 from Baa1, affecting approximately $389,000 in debt.
The bonds are secured by the system's operating revenues.
The downgrade to Baa2 reflects the district's weak bondholder security; challenged financial position evidenced by narrow debt service coverage; and highly leveraged debt. The rating also incorporates the district's small but stable customer base.