Moody's Investors Service said it has downgraded to A2 from A1 the rating on the village of Jackson, Wis.'s outstanding general obligation unlimited tax debt.
Concurrently, Moody's has assigned an A2 rating to the village's $2.4 million taxable general obligation promissory notes, Series 2012A.
The A2 rating applies to $18.0 million of outstanding general obligation debt.
The downgrade to the A2 reflects the village's extremely narrow cash position resulting from operating losses incurred by its telecommunications utility, modestly sized tax base near Milwaukee (GO rated Aa2/stable outlook), above average wealth levels, high debt burden and conservative management team."
Debt service on the current bonds is secured by the village's general obligation unlimited tax pledge.
Approximately $2.1 million of bond proceeds will be used to refund certain outstanding maturities of the village's state trust fund loans for an estimated net present value savings of 11% and approximately $200,000 will be used to acquire public works equipment.