Moody’s has downgraded to A1 from Aa3 the rating on Bangor, Maine’s $63.3 million of outstanding long-term debt. There is no outlook.
The bonds are secured by a general obligation limited-tax pledge. Proceeds from the bonds will be used to finance fire station and nursing home improvements.
The downgrade factors in a 20% reduction in the city’s reserve levels since 2003 and the recent stabilization of Bangor’s financial position at a level inconsistent with the Aa3 rating category, particularly given the city’s wealth profile, which trails state and national medians.