Moody's Investors Service said it has downgraded to A3 from A2 the rating on the town of Winchester, Conn.'s general obligation bonds and assigned a negative outlook affecting $4.6 million outstanding debt.
Concurrently, Moody's has withdrawn the rating due to insufficient information. The bonds are secured by the town's unlimited general obligation tax pledge.
The downgrade reflects Moody's belief that Winchester's already narrow financial position likely experienced further deterioration in fiscal 2012 and will remain pressured over the near term.
A forensic audit into accounting irregularities and possible fraud is ongoing and audited fiscal 2012 financial information is not expected until October.