Moody's Investors Service said it has downgraded to Aa3 from Aa2, the rating on the School District of Wisconsin Rapids, Wis.'s outstanding general obligation unlimited tax debt.
Concurrently, Moody's has assigned an Aa3 rating to the district's $6.4 million taxable general obligation refunding bonds. The Aa3 rating applies to $17.5 million of post-sale GO debt.
The bonds are secured by the district's general obligation unlimited tax pledge. The bonds will advance refund a portion of the Series 2005 taxable general obligation refunding bonds for savings.
The downgrade to the Aa3 rating reflects the district's moderately- sized tax base that has experienced limited to no growth in recent years as well as some concentration in its largest taxpayers and employers, and declining enrollment characterized by net losses in open enrollment.
The Aa3 rating additionally reflects slightly below average income indices that have weakened over the last decade, narrow financial operations after significant reductions in operating reserves, and the district's below average debt burden with limited future borrowing planned.