NEW YORK - Moody's Investors Service said it downgrades the rating to Aa3 from Aa2 on Surry County, N.C.'s $8.2 million of outstanding general obligation bonds. The bonds are secured by the county's ad valorem tax pledge.

The Aa3 rating reflects the county's sound financial position with notable recurrent draws on reserves for aggressive pay-go capital projects, the modestly sized rural tax base characterized by below average socioeconomic indices, and manageable debt burden with average debt amortization.

The rating additionally incorporates the likelihood the county will draw down on reserves further limiting financial flexibility to levels more in line with the Aa3 rating category.

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