NEW YORK - Moody's Investors Service said it has downgraded the city of Bedford, Texas's outstanding general obligation and certificates of obligation bond ratings to Aa3 from Aa2, affecting approximately $34.55 million in outstanding rated debt.

The GOs are secured by an ad valorem tax levied against all taxable property within the city, within the limits prescribed by law. The certificates of obligation are also secured by a limited pledge of net revenues of the city's water and sewer system.

The rating downgrade to Aa3 primarily reflects the city's weakened general fund liquidity, after cash funding the completion of a new library and other capital projects.

The Aa3 rating level also incorporates the city's sizeable assessed valuation, favorable socioeconomic indices, as well as manageable debt burden.

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