Standard & Poor's Ratings Services said it lowered its long-term rating one notch, to A-plus from AA-minus'on the city of Geneva, N.Y.'s general obligation (GO) bonds.
The outlook is stable.
At the same time, S&P assigned its SP-1-plus short-term rating to the city's 2014 bond anticipation notes (BANs).
"The downgrade is based on a deteriorated reserve position resulting from negative operating results in 2013," said Standard & Poor's credit analyst Ruth Ducret.
A pledge of the city's faith and credit secures these bonds. Proceeds from the 2014 BANs will be used to finance various citywide capital improvements, including Phase I and Phase II of the Lakefront Access Improvements Project and upgrades to the South and Marsh Creek Treatment Plants.
