NEW YORK - Moody's Investors Service said it has downgraded to Aa2 from Aa1 Anaheim's general obligation rating and to A1 from Aa3 the rating on the city's 2008 lease supported obligations. The outlook on these ratings is stable.

The downgrade is primarily based on the city's weakening financial position, combined with a long-term negative trend in the city's socioeconomic profile. Since 2007, the city's general fund has suffered three annual declines, and the sole surplus in 2009 was due to additional transfers from the city's electric enterprise.

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