Brockton, Mass., Downgraded to A1 by Moody's

Moody's Investors Service has downgraded to A1 from Aa3 the rating on the city of Brockton, Mass.'s $106 million of general obligation bonds.

A negative outlook has been assigned.

Concurrently, it affirmed the Aa2 enhanced rating on the city's general obligation state qualified municipal purpose loan of 2011 bonds.

The downgrade to A1 reflects the city's increasing financial pressures and reliance on reserves to balance operations. The rating also incorporates the sizeable tax base, below average socioeconomic indicators, manageable debt burden and large pension liability.

The Aa2 enhanced rating on the city's general obligation state qualified municipal purpose loan of 2011 Bonds reflects the inherent strength of the Massachusetts Qualified Bond Program (QBP) and its direct-pay arrangement authorized by state statute in which the state treasurer makes debt service payments on qualified bonds directly to the paying agent. The rating also incorporates the city's sound state aid coverage of annual debt service.

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