Moody's Investors Service said it has downgraded to A2 from A1 the rating on the city of Albany, Minn.'s outstanding general obligation debt.
The city has $13.2 million of outstanding general obligation debt outstanding, of which $3 million is rated by Moody's.
The bonds are ultimately secured by the city's general obligation unlimited tax pledge. The A2 rating reflects the city's modestly sized tax base with recent declines in value located near St. Cloud (GO rated Aa2), healthy general fund reserves, narrow sewer and golf enterprise operations, and leveraged debt burden with high debt service expenditures.