Moody's Investors Service has downgraded to A2 from A1 the general obligation rating for the city of Wadena, Minn.'s rated debt.
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The city has $3.8 million of general obligation debt outstanding, of which $2.1 million is rated by Moody's.
The city's general obligation debt is secured by an unlimited tax pledge.
The downgrade to A2 reflects the city's modestly-sized tax base with recent declines in value and below average income levels, adequate financial operations with limited liquidity while awaiting natural disaster reimbursements, and a manageable debt burden.
