Moody’s Investors Service downgraded Bridgeport, Conn.’s general obligation rating to A2 from A1 Monday and revised the outlook to negative from stable. The downgrade affects $657 million in outstanding debt.

Moody’s action stems from the city’s very narrow financial position following a reserve draw in fiscal 2012, wrote Moody’s analyst Thomas Compton and managing director Naomi Richman. The action is also due to pressure from long-term liabilities and a deficit in the city’s Internal Service Fund.

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