Moody’s Investors Service cut Lopatcong, N.J.’s general obligation bonds one notch to A1 from Aa3.
The rating action reflects the township’s narrowing financial position and practice of current fund drawdowns since fiscal 2007, Moody’s analysts said.
The rating also incorporates the township’s limited tax base with average wealth levels and a modest debt burden.
Moody’s placed the rating on review for possible downgrade on March 21, citing insufficient financial information. It has since obtained sufficient information to take the rating action, which applies to $7.79 million of outstanding debt.