NEW YORK - Moody's Investors Service said it has downgraded Green Island Power Authority, N.Y.'s power system revenue bonds to Ba1 from Baa3. The negative outlook remains in place.

The downgrade reflects the authority's continued depletion of cash reserves amid weaker hydrogenation revenues that the authority earns through sales of hydrogenation in the wholesale power market.

The downgrade also reflects GIPA's difficulties in improving its overall liquidity profile from the prior year period notwithstanding a New York Public Service Commission-approved rate order that was designed to increase revenues and ultimately stabilize the authority's liquidity position.

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