Moody's Investors Service has downgraded the underlying general obligation rating of Lancaster County two notches to A1 from Aa2, affecting $268 million of parity and debt.

Moody's said the downgrade "reflects the county's limited financial flexibility which has deteriorated over the last several years."

The agency cited structurally imbalanced budgets, and moderate variable-rate and swap exposure.

Lancaster County has offered an estimated $124 million for the incinerator in Harrisburg.

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