Moody's Investors Service said it has assigned a Aa2 rating to the city of Neenah, Wis.'s general obligation refunding bonds and downgraded to Aa2 from Aa1 the rating on the city's GO debt and has removed the negative outlook.
Post-sale the city will have $46.2 million in outstanding general obligation debt.
Moody's has also downgraded to A1 from Aa3 the city's lease revenue debt, affecting $22.5 million of outstanding lease revenue debt.
The bonds are secured by the city's general obligation unlimited tax pledge. Proceeds from the bonds will refund certain outstanding obligations of the city for savings.
The downgrade to Aa2 rating reflects the city's moderately sized and declining tax base; average demographic profile; reductions in available reserves due to consecutive general fund operating deficits and decreased alternate liquidity; and above average debt burden.
Removal of the negative outlook is based on the expectation that there will not be significant further decline in general fund reserves and that the city's underperforming TIF districts will begin to stabilize.