Moody’s Investor Service has lowered its bond rating for Montgomery County Community College.

The Wall Street rating firm cites falling enrollments and a drop in state and county funding.

The downgrade from Aa2 to Aa3 means the college will probably have to pay higher interest rates on future debt.  It plans to borrow an additional $34 million in the next year.

After several years of growth, full-time equivalent student enrollment declined by more than two percent in the fall of 2011 and nearly six percent last fall.