NEW YORK - Moody's Investors Service said it has downgraded to A2 from A1 the underlying general obligation bond rating for Morgan School District, Utah. The bonds are secured by an unlimited property tax pledge.

The downgrade to A2 underlying primarily, reflects the district's deteriorating financial position which has been sustained by one-time revenues in recent years.

With these one-time revenues phasing out in fiscal 2012, this district's fiscal imbalance threatens to result in further draws on reserves.

The rating also incorporates the district's favorable socioeconomic profile, moderately large property tax base and proximity to employment centers in Ogden and Salt Lake City.

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