Moody's Assigns Aaa Rating to Moraine Park Technical College District's General Obligation Promissory Notes

Strategic Insights -

Moody's Investors Service has assigned a Aaa rating to Moraine Park Technical College District's General Obligation Promissory Notes, Series 2025-26A, with a proposed par amount of $2.5 million. The district, located in southeast Wisconsin, boasts a large and diverse tax base, with a liquidity of about 22% of revenue, supporting its solid financial performance. Moraine Park Technical College District reports essentially balanced operations for fiscal 2025 and has a strong ability to manage expenditures, despite its limited revenue-raising ability. The district's reserves are sound, with a 5% increase in enrollment in the 2025-2026 school year contributing to improved financial performance.

Key Takeaways:

  • Moody's has assigned a Aaa rating to Moraine Park Technical College District's General Obligation Promissory Notes, Series 2025-26A, with a proposed par amount of $2.5 million.
  • The district maintains a Aaa rating on its outstanding general obligation unlimited tax (GOULT) notes and bonds.
  • The district's tax base is large and diverse, located in southeast Wisconsin (Aa1 stable).
  • Liquidity is approximately 22% of revenue, supporting solid financial performance.
  • The district reports essentially balanced operations for fiscal 2025 and has a strong ability to manage expenditures.
  • Overall leverage will moderate, with combined debt and pension burdens equal to 200% of revenue.
  • Enrollment has declined over the past decade but improved with a 5% increase in the 2025-2026 school year.
  • The district's reserves are sound, despite a narrowing of full accrual net current assets to only 6% of revenue.
  • Payments for capital projects, paid with restricted bond proceeds, will decrease liabilities and increase net current assets.
  • The district offers over 100 programs, including associate of applied science degree programs, vocational diploma programs, apprenticeship programs, and technical certificates.
  • Moody's principal methodology used in this rating was US Special Purpose District General Obligation Debt, published in February 2025.

Statistics:

  • Proposed par amount of $2.5 million for the General Obligation Promissory Notes, Series 2025-26A.
  • About $74 million in GOULT debt outstanding.
  • Liquidity is approximately 22% of revenue.
  • Combined debt and pension burdens equal 200% of revenue.
  • Enrollment increase of 5% in the 2025-2026 school year.
  • Net current assets at 6% of revenue, with a narrowing trend due to increased liabilities.
  • About 100 programs offered by Moraine Park Technical College District.

Sources:

  • Moody's Ratings (Moody's) - assigned a Aaa rating to Moraine Park Technical College District's General Obligation Promissory Notes, Series 2025-26A.
  • Moody's Investors Service - US Special Purpose District General Obligation Debt methodology, published in February 2025, available at https://ratings.moodys.com/rmc-documents/437940.
  • Moraine Park Technical College District - provides over 100 programs, including associate of applied science degree programs, vocational diploma programs, apprenticeship programs, and technical certificates.