Moody's Investors Service said it has downgraded to A3 from A2 the rating on Clinton Village, N.Y.'s $2.19 million of outstanding general obligation debt secured by a general obligation pledge of ad valorum taxes as limited by Property Tax Cap - Legislation (Chapter 97 (Part A) of the Laws of the State of New York, 2011).
The negative outlook has been removed.
The downgrade reflects the village's thin general fund position, very small tax base, and troubled water and sewer systems, which have required transfers from reserves to meet expenditures.
The rating also considers the wealth and stability of the village's tax base, its beneficial proximity to Hamilton College (rated Aa2/stable), and its above average debt burden. The removal of the negative outlook reflects the stabilization of the village's financial position at the lower rating level and management's demonstrated willingness to take action in order to improve enterprise and general fund operations.
