Moody’s Investors Service has downgraded Champaign County one notch to Aa2 due to its declining financial position.

The action affects $55.2 million of outstanding debt.

The county has seen its general fund balance fall to 5.8% of revenue from 15.8% in fiscal 2005.

“The Aa2 rating additionally reflects our expectation that the county’s sizeable $10.5 billion tax base located in east central Illinois will experience continued growth, albeit at a slower pace due to the current economic environment [and] the presence of the University of Illinois Champaign-Urbana campus,” Moody’s analysts wrote in their rating report.

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