CHICAGO - Wisconsin's Madison Metropolitan Schools lost its gilt-edge rating from Moody's Investors Service after a review prompted by the rating agency's shift in its local government general obligation rating methodology.
The rating agency lowered the Wisconsin district's general obligation rating by one notch to Aa1. It impacts $72 million of debt.
"The Aa1 rating reflects the district's sizeable tax base supported by one of the state and nation's most stable economies, sound financial operations, adequate though relatively narrow general fund reserves, modest debt profile; and manageable pension obligations," Moody's wrote in its report.
The district's challenges include a reliance on cash flow borrowing due to timing of major operating revenue sources. Reserve levels, though adequate, are relatively narrow for rating category.
