Moody's Investors Service has downgraded to A3 from A2 the underlying rating for Ashburn, Ga.'s $5.1 million of outstanding combined utility system revenue backed bonds.
The bonds are secured by a net revenue pledge of the gas, water and sewer system.
The downgrade to A3 reflects the utility's below one times debt service coverage in fiscal 2012, exposure to weather sensitive revenue, and stagnant rates for the water, sewer, and gas systems. The rating also reflects a limited customer base with a weak socio-economic profile, a manageable debt level, and adequate legal protections for bondholders.
