Riverhead, N.Y., Downgraded to Aa3 by Moody's

Published March 11, 2015, 7:33 a.m. EDT

Updated March 11, 2015, 7:35 a.m. EDT

1 Min Read

Moody's Investors Service said it has downgraded to Aa3 from Aa2 the rating on the town of Riverhead, N.Y.'s general obligation debt.

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The town has a total of $112 million in GO debt outstanding.

The downgrade to Aa3 is based on the deterioration of general fund reserves due to annual fund balance appropriations.

The Aa3 rating also incorporates the town's sizeable tax base, above average resident wealth levels, additional reserves in the town's highway fund to support pay-go capital projects, and elevated debt and pension burdens.

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