Moody’s Investors Service has upgraded Lake Geneva’s rating a notch to Aa2, citing its solid financial position.
The action affects $7.3 million of general obligation debt. The city is preparing to sell $3 million of promissory notes to finance various capital projects.
“The assignment of and upgrade to the Aa2 rating reflects the city’s moderately sized tax base with a steady pace of growth, well-managed financial position supported by conservative budgeting practices, and affordable debt profile,” Moody’s wrote.
The credit is supported by the city’s satisfactory reserve levels and its favorable location near Milwaukee and Chicago, given its status as a tourist haven. Its reliance on visitors also poses a challenge because of the risk tourism-related spending could fall. The city’s moderately sized $1.3 billion tax base has increased 5.7% annually over the past five years.
