Moody's cuts Binghamton, N.Y., underlying rating to A2

Wed Jan 30, 2013 4:42pm EST

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Jan 30 (Reuters) - Moody's Investors Service on Wednesday cut Binghamton, New York's underlying rating by one notch to A2 from A1, and said it may make further cuts to the rating, which affects about $87.4 million of debt.

The rating agency also assigned an MIG 2 rating to the city's $33.8 million various purpose bond anticipation notes (BANs) and its $1.37 million BANs for sewer system improvements. It added it may cut these ratings as well.

The downgrade reflects the city's continuing weakness in its enterprise, late financial statements, a decline in wealth indexes and high debt burden, the rating agency said in a statement.

Moody's said that further downgrades may be prompted by the city's consistently late financial statements and "unclear financial picture across all of the city's funds."

The rating agency said it may also withdraw the rating due to insufficient information.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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