NEW YORK - Moody's Investors Service said on Tuesday it downgraded the rating on the $69.4 million water refunding bonds, Series 2008, issued by the Harrisburg Authority to Ba3 from Ba1 and then withdrew the rating on the debt.
The bonds are secured by net revenues of the authority's water system. Harrisburg, the Pennsylvania capital city, is in the midst of a contentious bankruptcy filing.
“The downgrade to Ba3 from Ba1 reflects a narrowing of the water system's liquidity and heightened risk of a disruption to financial operations given the city's ongoing financial distress and recent bankruptcy filing,” Moody's said. “It also incorporates uncertainty surrounding the water system's insulation from any plans for fiscal recovery by the city.”
