Moody’s Investors Service last week downgraded Burlington to A2 from Aa3 and placed the credit under review for possible downgrade. The rating change affects approximately $87 million of outstanding parity debt.

Moody’s cited the city’s use of its pooled cash account to help finance the expansion of its telecommunications enterprise, which has been operating with deficits. Such interfund borrowing, which totaled $15.9 million at the end of 2009, has weakened Burlington’s liquidity.

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