Moody's Investors Service said it has downgraded to A1 from Aa3 the rating on the city of Waupun, Wis.'s general obligation debt.
Concurrently, an A1 rating was assigned to the city's $4.3 million GO swimming pool bonds, Series 2013A. Post sale, the city will have $13.7 million of GO debt, $12.6 million of which is rated by Moody's. All GO bonds are secured by the city's general obligation unlimited tax pledge.
Proceeds from the voter-approved 2013A bonds will be used to finance construction of an aquatics center. The A1 rating reflects the city's small and declining tax base, reduced general fund liquidity due to advances to various tax increment district funds, limited revenue raising flexibility, and high debt burden relative to its peers.
