NEW YORK - Moody's Investors Service said it has downgraded the township of Lopatcong, N.J.'s long-term rating to A1 from Aa3 and removed from rating under review for possible downgrade, affecting $7.79 million of outstanding long-term general obligation debt.
The bonds are secured by the township's unlimited property tax pledge.
The downgrade reflects the township's narrowing financial position and practice of current fund drawdowns since fiscal 2007.
The A1 rating also incorporates the township's limited tax base with average wealth levels and modest debt burden.
The rating was placed under review for possible downgrade on March 21, for insufficient information. Moody's said it has since obtained sufficient information to take this rating action.