Moody's Investors Service said it has downgraded the rating on city of Maitland, Fla.'s $12.9 million limited ad valorem tax bonds, Series 2005 to Baa3 from Baa2.

The outlook remains negative.

The bonds are secured by city's limited ad valorem tax of 0.5 mills.

The downgrade to Baa3 reflects additional deterioration in coverage levels from the pledged limited tax due to pronounced and unabated tax base declines, and the lengthy remaining payout on the bonds.

The negative outlook reflects lingering tax base pressures from the recent correction in the housing market, which Moody's expects will likely translate to the further erosion of taxable values over the near term.

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