Moody's Investors Service said it downgraded the township of Washington (Gloucester County), N.J.'s general obligation rating to Aa3 from Aa2.
Moody's has assigned the Aa3 rating to the township's $8.93 million general obligation bonds, Series 2012. The bonds are secured by the township's unlimited general obligation pledge.
The rating applies to approximately $24.1 million of outstanding parity debt including the current sale.
Proceeds of the current issue will be used to redeem bond anticipation notes initially issued to fund a variety of capital projects including roadwork. The township will not have any bond anticipation notes after the redemption with the proceeds from the current sale.
The downgrade to Aa3 reflects the trend of fund balance draw-downs over several years, leading to reserve levels below peers. The rating also incorporates a large, healthy tax base with above-average wealth levels, and a moderate debt burden.