Moody's Investors Service said it has downgraded the city of Fulton, N.Y., to Baa1 from A2, affecting approximately $300,000 in outstanding general obligation debt.
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The city's debt is secured by a general obligation pledge as limited by the Property Tax Cap - Legislation (Chapter 97 (Part A) of the Laws of the State of New York, 2011).
The downgrade to Baa1 reflects the city's deteriorating financial position due to the inability to generate revenues sufficient to cover growing fixed costs; a limited and declining tax base due to the loss of two top taxpayers; an above average debt burden, and extended long term liabilities through pension amortization.
