Moody's Investors Service has downgraded to Aa3 from Aa2 the rating on the city of Euclid, Ohio's outstanding general obligation limited tax debt.

The Aa3 rating applies to $35.3 million in outstanding GOLT debt.

The city's outstanding rated bonds are secured by its GOLT pledge, subject to the statutory 10-mill limitation.

The downgrade to the Aa3 rating reflects the city's moderately sized tax base located in Cuyahoga County (GOLT rated Aa1/stable outlook) experiencing valuation declines; below average socio-economic indices; relatively narrow financial position; heavy reliance on income tax revenues to fund operations; and manageable debt profile with average principal amortization.

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