CHICAGO — Moody’s Investors Service late last week downgraded two of five Wisconsin school districts, citing fiscal pressures posed by risky investments in collateralized debt obligations with a credit default swap to fund their other post-employment benefit liabilities.

Moody’s affirmed the ratings of three of the districts, but all five remain on the agency’s watch list for a possible downgrade as analysts await action by the schools to make good on their moral obligation to repay notes issued to fund the failed investment.

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