NEW YORK - Moody's Investors Service said it has downgraded to Aa3 from Aa2 the rating on Wyoming, Mich.'s outstanding revenue debt secured by a first lien on the net revenues of the city's sewage disposal system and assigned an Aa3 rating to the city's $3.1 million sewage disposal system revenue refunding bonds, Series 2012.

Post-sale, the system will have $47 million of outstanding sewer revenue bonds, of which $42.9 million is rated by Moody's.

The bonds are secured by a first lien on the net revenues of the city's sewage disposal system. Proceeds of the bonds will refund the system's outstanding bonds Series 1999 and 2002 for estimated net present value savings.

The Aa3 rating reflects the system's adequate legal provisions for bondholders, sizeable service area outside of Grand Rapids (Aa1 with stable outlook), adequate financial operations with recent declines in liquidity, and increased debt ratio.

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