NEW YORK - Moody's Investors Service said it has affirmed the A1 underlying rating on Montgomery County, N.Y.'s $35.7 million of outstanding rated general obligation bonds and revised the outlook to negative.

The bonds are secured by a general obligation pledge as limited by the Property Tax Cap -- Legislation (Chapter 97 (Part A) of the Law of the State of New York, 2011.)

The A1 rating reflects the county's rural tax base, manageable debt burden, and below average socioeconomic indicators. The negative outlook considers the recent narrowing of reserves through structurally imbalanced operations and Moody's expectation that the county will be challenged to rebuild fund balance and cash position over the medium term. Additional declines limit the county's financial flexibility to offset budget variations and growth over the next several years.


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