Moody's Investors Service said it has downgraded to A2 from A1, the rating the city of Little Falls, Minn.'s outstanding $6.2 million of rated general obligation debt.
The city currently has $24.7 million of general obligation debt outstanding.
The bonds are secured by the city's general obligation unlimited tax pledge.
The A2 rating reflects the city's modestly sized tax base with declining valuations, weak demographics, lower reserve levels compared to Minnesota medians for cities, and leveraged debt position.
