Moody's Investors Service said it has downgraded the borough of Glen Rock, N.J.'s general obligation rating to A1 from Aa3.

Concurrently, Moody's assigns an A1 rating to the borough's $9.5 million 2014 general improvement bonds. The bonds are backed by the borough's general obligation unlimited tax pledge. The proceeds will permanently finance approximately $9.4 million of outstanding bond anticipation notes and will fund $88,000 of various capital projects.

The downgrade affects approximately $14.9 million of GO debt, including $1.9 million of GO-guaranteed revenue debt.

The downgrade reflects the borough's diminished financial flexibility and narrow current fund balance after multiple years of imbalanced operations. The A1 rating incorporates the borough's moderately sized tax base, well above average wealth levels, and manageable debt burden.

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