Moody's Investors Service said it has downgraded to A1 from Aa3 the city of Brandon, Miss.'s general obligation rated bonds.
Downgrade affects $5.8 million in outstanding general obligation debt, secured by the city's general obligation, unlimited tax pledge.
The city has an additional $5.5 million in parity obligations and $3.5 million in general obligation limited tax bonds not rated by Moody's.
The A1 rating reflects the city's ongoing challenge to become structurally balanced which has resulted in an extremely narrow reserve position.
Additional considerations in the rating determination included the stable tax base that benefits from proximity to Jackson, strong socioeconomic indices and a low debt burden. The bonds are secured by the city's unlimited property tax authority.
