Strafford County, N.H., Outlook to Stable by Moody’s

NEW YORK - Moody's Investors Service said it has affirmed Strafford County, N.H.'s Ba2 general obligation bond rating, affecting approximately $19.7 million in outstanding parity debt. Concurrently, Moody's has revised the outlook to stable from negative.

The bonds are secured by a general obligation unlimited tax pledge. The Ba2 rating reflects the county's continued weak financial position, limited liquidity, and heavy reliance on cash flow borrowing.

Revision of the outlook to stable from negative reflects further credit deterioration is unlikely at this time given the county's demonstrated ability to maintain market access for cash flow borrowing, elimination of the accumulated unreserved deficit in the general fund related to a large receivable due from the county nursing home through accounting changes, and management's plan to incrementally increase reserves and reduce dependence on cash flow borrowing over the next several years.

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