Moody's Investors Service has assigned a A1 rating to the city of Edgerton, Wis.'s $3.2 million general obligation refunding bonds, and downgraded to A1 from Aa3 the rating on the city's outstanding general obligation unlimited tax debt.
Post-sale, the city will have $7.2 million of outstanding general obligation debt.
Debt service on the bonds is secured by the city's general obligation unlimited tax pledge. Proceeds of the bonds will refund the certain outstanding maturities of the city's 2006 general obligation refunding bonds and two state trust fund loans for estimated interest savings.
The downgrade to A1 from Aa3 reflects the small size of the tax base that has recently experienced three consecutive years of valuation declines. The A1 rating also reflects the city's healthy financial operations and a manageable debt burden with no future borrowing plans.