NEW YORK - Moody's Investors Service said it downgraded to Aa1 from Aaa Oklahoma County, Okla.'s general obligation limited tax bonds, affecting $62.6 million in outstanding parity debt.

Concurrently, Moody's has assigned a Aa1 rating to Oklahoma County's $4.0 million general obligation limited tax refunding bonds, series 2012A. Proceeds from the sale will be used to refund certain maturities of the county's series 2002 general obligation limited tax bonds for an estimated 7.4% net present value savings.

The bonds constitute direct and general obligations of the county, payable from ad valorem taxes levied against all taxable property therein, excepting homestead exemptions; however, in no event shall the taxable property be subject to a special tax in excess of five (5) mills for all bonds issued.

The downgrade to Aa1 reflects the county's declining level of general fund reserves, declining general fund liquidity, and below average socioeconomic profile.

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