Moody’s Investors Service this week downgraded to Baa2 from A3 $16.1 million of revenue bonds issued by the Capital Region Airport Authority, which serves the state capital of Lansing.

Moody’s revised the outlook to negative from stable even after the two-notch downgrade. The credit action reflects the airport’s deteriorating operations and weak economy, analysts said. A decline in passenger levels — which fell nearly 24% from 2009 to 2010 — has forced it to rely more heavily on property tax revenue to cover its operating expenses.

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