Moody’s Investors Service has stripped Le Center, Minn., of its investment-grade rating and warned of further negative action due to the city’s reliance on cash-flow borrowing to cover a February debt-service payment and its inability to repay a loan that came due in December.

Moody’s downgraded the city to Ba2 from A1 and assigned a negative outlook. The action affects $9.3 million of debt.

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