Moody’s Investors Service last week called Menasha’s settlement with holders of its defaulted steam plant notes, and the sale-leaseback of its electric utility assets to help fund the agreement, “positive developments for the city’s credit profile.”

The city’s general obligation rating is at Ba1. The city lost its investment-grade rating due to the strain posed by its steam plant debt and its decision not to make good on its appropriation pledge to repay $24 million of notes tied to the utility.

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