Moody's Investors Service has downgraded to A1 from Aa3 the rating on the Somerset School District, Wis.'s outstanding general obligation unlimited tax debt.
Concurrently, Moody's has assigned an A1 rating to the district's $8.0 million general obligation school improvement bonds.
Post-sale, the district will have $16.6 million of outstanding general obligation debt.
Debt service on the bonds is secured by the district's general obligation unlimited tax pledge. In April of 2013, district residents approved, by a 675-512 vote, the issuance of the bonds. Proceeds of the bonds will finance capital improvements at the district's middle school and three additions to the district's high school facility.
The A1 rating reflects the district's small tax base that has experienced four consecutive years of declines following years of rapid growth, satisfactory financial profile, and an elevated debt burden characteristic of a growing district.
