Moody's Investors Service said it has downgraded to A1 from Aa3 the rating on the county of Salem, N.J.'s $63.7 million total outstanding general obligation debt.
The bonds are secured by the county's unlimited property tax pledge.
The downgrade to A1 reflects the county's weakened financial position caused by several years of structural imbalance, which has limited financial flexibility.
The rating also considers the county's medium-sized and stable tax base located in southwestern New Jersey and manageable debt burden with average amortization of principal. The outlook is stable.