Dayton, Minn., Downgraded to A1 by Moody's

Moody's Investors Service said it has downgraded to A1 from Aa3 the rating on the city of Dayton, Minn.'s general obligation unlimited tax debt.

The city has $35 million of outstanding general obligation debt.

The city's outstanding bonds are secured by its general obligation unlimited tax pledge, although debt service is also paid from special assessments. The A1 rating reflects the city's very leveraged debt profile with elevated debt service expenditures; limited tax base of $537 million; and healthy reserve levels.

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