Moody’s Investors Service last week downgraded Lansing to A1 from Aa2, warning that the Michigan capital faces significant declines in property valuation and has a history of operating deficits.

The downgrade affects $43.1 million of outstanding general obligation limited-tax debt and $2.7 million of lease revenue bonds. The operating deficits have reduced the general fund reserve to narrow levels, Moody’s said.

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