Moody's Investors Service said it has downgraded Onondaga County Water Authority, N.Y., to Aa3 from Aa2 affecting $70 million in previously issued parity revenue bonds outstanding. The bonds are secured by a first lien on net system revenues.

The Aa3 rating reflects the system's adequate financial operations, characterized by strong but declining debt service coverage and improving but still well below average unrestricted reserves.

The rating also reflects a favorable but growing debt profile with a track record of capital reinvestment, an ample and diverse water supply, and a stable service area with significant concentration and modest annual growth.

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