Moody's Investors Service downgraded Dutchess County, N.Y.'s general obligation rating to Aa2 from Aa1 on Nov. 8, affecting $108 million in debt.

Moody's analyst Vito Galluccio and vice president Geordie Thompson attributed the downgrade to several factors. The county's reserves have been shrinking and are now at levels below Aa national county medians, they wrote. The county has seen a declining tax base in recent years. It depends on economically sensitive revenues.

On the other hand, the county still has a sizable tax base, they said. It has improving sales tax revenues, above average wealth levels and relatively moderate unemployment.

Dutchess County is located more than 70 miles north of New York City. As of 2010 it had about 300,000 residents.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.