Madelia, Minn., Downgraded to A3 by Moody's

Moody's Investors Service said it downgraded to A3 from A2 the rating on the city of Madelia, Minn.'s outstanding general obligation debt.

The city has $530,000 of general obligation debt outstanding.

Madelia's outstanding debt is secured by the city's general obligation unlimited tax pledge.

The A3 rating reflects significant valuation declines in the city's extremely small tax base, weak demographic profile, sound financial operations with healthy reserve levels, and low debt burden.

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