Moody's Investors Service has downgraded to A2 from A1 the city of Natchez, Miss.'s general obligation rating, affecting $3 million of outstanding Moody's-rated debt.
The city has an additional $11.9 million of general obligation debt outstanding that is not rated by Moody's but considered in the credit analysis.
The bonds are general obligations of the city and are secured by an unlimited tax pledge. The downgrade to A2 reflects the city's limited financial position, including narrow cash levels within the general fund.
The rating further considers the average-sized, but concentrated, tax base, below average socioeconomic profile, and a manageable debt burden.
