Milwaukee Public Schools, WI Redevelopment Funding Bonds Placed On CreditWatch With Negative Implications
S&P Global Ratings placed its ‘A+’ long-term ratings on Milwaukee Public Schools (MPS) Wis.’s outstanding series 2016A and 2017A redevelopment lease revenue bonds; series 2015A, 2016B, and 2016C taxable redevelopment lease revenue bonds; and ‘A’ long-term and underlying ratings (SPUR) on the district’s series 2003C and 2003D taxable pension funding bonds, all of which were issued by the Redevelopment Authority of the City of Milwaukee (RACM), on CreditWatch with negative implications.
S&P Global Ratings sought the final third-party financial audit from MPS for the 2022-2023 fiscal year ending June 30, 2023 to assess the district’s financial position.
“To date, the district has not issued its final 2022-2023 audited financial statements,” said S&P Global Ratings credit analyst David Smith. “The ratings’ placement on CreditWatch with negative implications reflects our view that there is at least a one-in-two chance of a lower rating in the next 90 days, pending the finalization of the district’s 2022-2023 audit and our assessment of whether its credit quality has deteriorated due to financial reporting irregularities,” Mr. Smith added.
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Madison’s bonds were downgraded in 2021:
6. Bond rating (Moody’s): two downgrades (from Aaa to Aa2) from 2014 to 2020
