Moody's Investors Service said it has downgraded Roseland's long-term rating on about $3.7 million in outstanding rated debt secured by the New Jersey borough's unlimited-tax general obligation pledge.
The drop to Aa3 from Aa2 reflects Roseland's significantly narrowed financial position following several years of current fund balance declines through fiscal 2009 and the expectation that reserves will remain at lower levels in the medium-term. Its fiscal year ended Dec. 31.
The Aa3 rating also incorporates Roseland's moderately sized tax base with ongoing tax appeals, above-average wealth levels and very low debt burden with no near-term debt plans.
