NEW YORK - Moody's Investors Service said it downgraded to A2 from A1 the rating on the city of University Place, Wash., $48 million of outstanding general obligation limited tax debt. At this time, Moody's has also assigned a negative outlook to the rating.
The downgrade primarily reflects the city's high level of general fund-supported debt, as well as its diminished general fund balance and very narrow liquidity position. The negative outlook reflects near-term, significant budgetary inflexibility that will remain a challenge for the foreseeable future.
