Moody's Investors Service has downgraded to A2 from A1 the rating on the village of Somerset, Wis.'s outstanding general obligation unlimited tax debt.
Concurrently, Moody's has assigned an A2 rating to the village's ($1.38 million general obligation refunding bonds, Series 2012A. Post-sale, the village will have $5.9 million of outstanding general obligation debt.
Proceeds of the bonds will refund the village's outstanding general obligation promissory notes, Series 2005A and the 2013 through 2022 maturities of the village's outstanding general obligation corporate purpose bonds, Series 2003 for estimated net present value savings of 9.5%.
Debt service on the bonds is secured by the village's general obligation unlimited tax pledge.
The A2 rating reflects the village's very small tax base, narrow but improving cash position, and an elevated debt burden with limited future borrowing plans.