Moody's Investors Service said it has downgraded the rating on Scotland County, N.C.'s $13 million outstanding general obligation debt to A2 from A1.
The county's negative outlook has been removed. The bonds are secured by the county's unlimited tax pledge.
The A2 rating reflects below-average socioeconomic indices, a late 2013 audit by the North Carolina State and Local Government Commission (LGC) standards, and the county's continued struggles to make its enterprise funds self-sustainable.
The rating also incorporates the moderately sized and growing tax base, improving financial performance and cash reserves, and a manageable debt profile with a slightly below-average amortization of debt payment.
