Moody's Ratings assigns AA2 to Fond du Lac County, WI's GO notes

Moody's Investors Service has assigned an Aa2 rating to Fond du Lac County, Wisconsin's $5.7 million General Obligation Promissory Notes, Series 2021A. This rating reflects the county's strong financial position, supported by effective management and a diverse tax base. The rating agency notes that while the county faces limited revenue-raising flexibility due to state-imposed levy limits, its financial stability is bolstered by a reliance on property taxes, which are expected to remain resilient.

Following the issuance, Fond du Lac County will have $65.9 million of rated GOULT debt outstanding. The Aa2 rating is consistent with the county's existing GOULT debt, which is also rated Aa2. Moody's does not anticipate immediate credit risks from the coronavirus, given the county's reliance on property taxes.

The proceeds from the current issuance will be used to fund capital improvement projects, including computer network and software upgrades, fleet replacements, and highway infrastructure. The county, located in southeast Wisconsin, serves a population of over 103,000 residents and provides a range of municipal services.

Factors that could lead to an upgrade include improved resident income levels and significant growth in operating reserves. Conversely, a downgrade could result from a weakening tax base or declining operating reserves. The rating action was conducted using Moody's U.S. local government methodology.