Moody's Investors Service has downgraded to A3 from A2, the rating on New York Mills Independent School District 553, Minn.'s $6.4 million outstanding general obligation debt secured by the district's unlimited tax pledge.

The downgrade to the A3 rating reflects the district's very limited and declining tax base, below average socio economic profile, and narrow financial position, with pressures due to declining enrollment and state aid delays.

The rating also reflects the district's average debt burden, which is expected to decrease given the absence of near term debt plans.

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