NEW YORK - Moody's Investors Service said it has upgraded to Aa2 from Aa3 the rating on Whitefish Bay School District, Wis.'s general obligation unlimited tax debt. The outlook remains stable. The Aa2 rating applies to $8.7 million of outstanding general obligation debt rated by Moody's.

The district's GO debt is secured by its general obligation unlimited tax pledge.

The Aa2 rating and stable outlook is based on the district's mature tax base with well above average resident wealth levels; healthy financial operations characterized by sound General Fund reserves; and modest debt levels with no additional borrowing plans.

The rating also factors in the resolution of litigation related to high risk investments purchased by the district's Other Post-Employment Benefits (OPEB) trust, and the district's decision to tie its moral obligation pledge to the performance of these investments.

As a result of the recent settlement, the district has been entirely and permanently released from the moral obligation to its OPEB Trust. Additionally, the district will receive additional settlement proceeds backed by a letter of credit and supplemental payment pledge upon the resolution of further outstanding litigation related to the CDO transaction.

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