Kewaunee County receives upgraded bond rating score

KEWAUNEE COUNTY – Kewaunee County staff said that “effective management of fiscal resources is a strong contributing factor behind an upgrade to Kewaunee County’s bond rating” by Moody’s Investors Service.

“Kewaunee County has been assigned a new rating of Aa3 for its long-term credit, moving up from the fifth step to the fourth on a 10-step scale,” a release from Kewaunee County Administrator Jeremy Kral said.

In a Moody’s press release, the “Ratings Rationale” stated the ratings upgrade, “…reflects strong reserves that are now approaching 60% of revenue, a low long-term liabilities ratio, and a solid economic base with some concentration in agriculture and manufacturing.”

“The upgrade of Kewaunee County’s bond rating by Moody’s is a welcome development. As the Rating Action describes, this improvement in our bond rating is a reflection of the county’s sound and prudent management of our finances, from the county board to department heads and our dedicated and conscientious employees,” Kral added. “Going forward, when the county needs to borrow for large expenses like building projects, the market will be well-advised of our solid financial foundation and rates will be lower, saving county taxpayers on their bills.”

Currently, Kewaunee County has $4.35 million of outstanding general obligation debt, which is 2.24% of its legal debt limit.

In 2020, general obligation debt stood at $9.65 million.

“Kewaunee County leaders and team members have a clear and consistent focus on being wise custodians of public funds. Our policies and practices support that objective, and this upgrade reflects our success in living the value of stewardship. As we consider future plans for county government, the capacity to borrow responsibly at an affordable rate is a valuable tool to have available and deploy as appropriate,” Kral added.

Kewaunee County’s new Aa3 rating was issued by Moody’s in December and is the second rating upgrade in the past four years.