NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned a long-term rating of AA with a stable outlook to the State of Wisconsin’s $297 million General Obligation Refunding Bonds of 2014, Series 4 and affirms the long-term rating of AA with a stable outlook on the State’s outstanding General Obligation Bonds, excluding bonds backed by a letter of credit or liquidity facility, unless otherwise noted. As of November 1, 2014, Wisconsin has $7.76 billion outstanding General Obligation debt.
Wisconsin’s recovery from the national recession continues to be moderately strong, as evidenced by ongoing increases in employment and lower unemployment rates than the region and the nation. KBRA views the financial condition of Wisconsin as improving as a result of ongoing recovery of the revenue base from the recession and the increased budget discipline imposed under the current administration. The State has a history of operating with structurally imbalanced budgets, dependence on the use of one time revenues and minimal reserves. Under the current administration, significant progress has been made towards structural budget balance, reflected in reduced use of one time revenues and several years of improving General Fund operating results.
Based on its Annual Fiscal Report (AFR) issued on October 15, 2014, FY 2014 ended with a total undesignated budgetary balance of $516.9 million, or 3.5% of General Fund appropriations, which represents a decline of approximately $207 million from the May 2014 projections. The Budget Stabilization Fund remains funded at $279.3 million, which represents approximately 2% of FY 2013 expenditures.
The rating is based on KBRA’s U.S. State General Obligation Rating Methodology published on March 28, 2012.
Please use the following link to view KBRA’s full report on the State: State of Wisconsin’s General Obligation Refunding Bonds of 2014, Series 4
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About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
