Moody’s Investors Service downgraded Manitowoc two notches to A1 from Aa2 and assigned a negative outlook due to its structural budget imbalance.

The rating action affects $72.4 million of debt and comes ahead of a $12 million general obligation refunding.

“The negative outlook reflects the city’s ongoing structural imbalances that have led to deterioration in financial flexibility and have limited the city’s ability to absorb negative budget variances,” Moody’s wrote.

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