DALLAS - Moody's Investors Service downgraded its Baa3 rating on nearly $23 million of debt issued by the Arkansas City, Kan., Public Building Commission to a junk-bond rating of Ba1, citing narrow reserves and enterprise risk from a city-supported hospital.

Moody's, which last downgraded the debt to Baa3 from A3 in May 2012, maintains its negative outlook on the debt.

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