Moody's Investors Service said it has downgraded to A2 from A1, the rating on the city of Foley, Minn.'s outstanding $4.7 million of rated GO debt.

The city currently has $5.5 million of general obligation debt outstanding, of which $4.7 million is rated by Moody's.

The city's general obligation debt is secured by its unlimited tax pledge. The A2 rating reflects the city's modestly sized tax base with recent significant declines in valuation and below average income levels, concentrated tax base, stable financial operations with ample reserves, and an above average debt burden with very high debt service expenditures.

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