Moody's Investors Service said it has downgraded to A1 from Aa3 the rating on Reedsburg, Wis.'s $4.7 million of outstanding general obligation unlimited tax debt.

The downgrade reflects the city's small and declining tax base and low resident wealth levels, as well as its weak general fund net cash position primarily as a result of its support of underperforming tax increment financing (TIF) districts. The A1 rating also reflects the city's stable overall general fund balance and manageable levels of rapidly retired debt.

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