Moody's Investors Service said it has downgraded Montgomery County, Pa.'s general obligation rating to Aa1 from Aaa, affecting $417 million of long-term debt outstanding. Concurrently, Moody's has revised the outlook to stable from negative.

The county's bonds and notes are secured by a general obligation, unlimited tax pledge. The downgrade of the county's rating to Aa1 reflects its narrowed financial position following several years of sizable operating deficits caused by a growing structural imbalance.

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