Moody's Investors Service said it has downgraded to Aa3 from Aa2 the underlying rating on Skaneateles Central School District, N.Y.'s $29.2 million in outstanding general obligation debt.

The district's debt is secured by an unlimited tax pledge.

The downgrade to Aa3 reflects the district's narrowed financial position that is expected to remain narrow given pressures from rising healthcare and pension obligations.

The rating also incorporates the district's moderately-sized wealthy tax base located within the Finger Lakes Region of the state, and affordable debt position with rapid amortization of principal.

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