Moody's Investors Service said it has downgraded to A1 from Aa3 the rating on Lac du Flambeau School District 1, Wis.'s outstanding general obligation debt.
Concurrently, Moody's has assigned an A1 rating to the district's $1.0 million general obligation promissory notes, Series 2013. The A1 rating applies to $1.8 million of outstanding general obligation debt, including the current offering.
The current issue is secured by the district's general obligation unlimited tax pledge. Proceeds from the notes will be used to finance energy efficiency improvements for the district.
The downgrade to the A1 rating reflects the district's moderately sized, depreciating tax base in northern Wisconsin (GO rated Aa2/stable outlook); very low socioeconomic characteristics; financial operations supported by stable reserves; high reliance on federal impact aid; and a modest debt burden with no future borrowing plans.
