CHICAGO — Moody’s Investors Service this week lowered Kimberly Area School District’s general obligation debt one notch to Aa3, making it the third district to suffer a downgrade after reneging on a moral obligation pledge to repay asset-backed notes issued by their non-pension retiree health care trusts.

Five southeastern Wisconsin school districts were involved in a now-worthless investment scheme tied to funding their unfunded other post-employment benefit liabilities. They opted not to honor their moral obligation pledge on the notes held by Depfa Bank Plc by refusing to include repayment in their preliminary fiscal 2011 budgets. The notes were issued in 2006.

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