Manassas Park, Va., On Moody’s Watch for Downgrade

NEW YORK - Moody's Investors Service said it is placing on Watchlist for possible downgrade the ratings on the city of Manassas Park, Va.'s general obligation bonds (rated A1/Negative), affecting approximately $116.9 million in outstanding debt.

The Watchlist action reflects downward pressure on the city's credit rating, a weakened General Fund financial position, as well as a negative undesignated General Fund balance.

Moody's expects to resolve the Watchlist action after receiving recent operating information, including audited fiscal 2011 financial statements and a five-year financial plan, which is expected to be voted on by the city's governing body in the next few weeks. Pending additional information that is expected to be obtained within the next 60 days, Moody's will take appropriate rating action.

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