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Moody's Investors Service Inc.

Moody's Downgrades Wilmot Union High School District, WI's Issuer Rating to A1

Strategic Insights

— 1 min read

The downgrade of Wilmot Union High School District, WI's issuer rating to A1 from Aa3 has been announced by Moody's Investors Service. The district's general fund balance ratio will likely remain around 15% through fiscal 2025, resulting in a narrower financial position than anticipated. Despite this, the district has stabilized its operations, and further deterioration is unlikely.

Key Takeaways:

  • The issuer rating of Wilmot Union High School District, WI was downgraded to A1 from Aa3 due to the district's financial position, particularly in its general fund, remaining more narrow for longer than anticipated.
  • The district's general fund balance ratio will likely remain around 15% through fiscal 2025, resulting in a narrower financial position than anticipated.
  • The district has stabilized its operations, and further deterioration is unlikely, with positive factors including a solid local economy and a strong full value per capita nearing $200,000.
  • The district's enrollment has declined over the past several years, but management projects that trend to stabilize.
  • The district's moderate long-term liabilities ratio, around 200%, will remain even with plans for additional borrowing in fiscal 2026.
  • The district's general fund balance ratio halved over the past several years due to operating pressures and lack of voter support for new levies.
  • The district implemented staffing cuts and achieved a small general fund surplus in fiscal 2024, but it will likely take more time to bring fund balance back to levels commensurate with higher rated peers.
  • The district's net cash ratio was effectively 0% in fiscal 2024 because roughly all of its year-end cash was from short-term cash flow notes.

Statistics:

  • Wilmot Union High School District, WI's general fund balance ratio will likely remain around 15% through fiscal 2025.
  • The district's enrollment is roughly 900 students.
  • The district's full value per capita is nearing $200,000.
  • The district's long-term liabilities ratio is around 200%.
  • The district's available fund balance ratio declined to 15% in fiscal 2024 from 26%.
  • The district's net cash ratio was effectively 0% in fiscal 2024.

Sources:

  • Moody's Investors Service: [Moody's Ratings webpage for Wilmot Union High School District](https://ratings.moodys.com/issuesarchive)
  • Moody's Investors Service: [Methodology - US K-12 Public School Districts](https://ratings.moodys.com/rmc-documents/425431)

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