Moody’s Investors Service said it has downgraded the general obligation rating of the Enlarged Ogdensburg City, N.Y., School District to Baa2 from Baa1, affecting $5.3 million in outstanding debt secured by the district’s unlimited-tax general obligation pledge.

The downgrade is based on the district’s narrow general fund balance and net cash position, coupled with weak financial controls, analysts said. The outlook is negative, reflecting the potential for continued pressure on the district due to rising pension costs and dependence on state aid.

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