Moody’s Investors Service on Monday downgraded West Allis/West Milwaukee School District’s general obligation rating to A2 from A1 with a negative outlook after the district board reneged on its moral obligation pledge to repay asset-backed notes issued by its non-pension retiree health care trust. The action affects $18.5 million of outstanding GO debt.

It is the fifth Wisconsin district to be downgraded by Moody’s in connection with such debt. Final budgets will be approved this fall. The five districts issued a combined $165 million of asset notes to fund their investment in collateralized debt obligations that involved credit default swaps.

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