KBRA Releases Report Assigning AAA, Stable Outlook to State of Wisconsin G.O. Refunding Bonds

On February 7, 2025, KBRA assigned a AAA rating, with a Stable Outlook to the State of Wisconsin's (the State's) General Obligation (G.O.) Refunding Bonds of 2025, Series 3 and G.O. Refunding Bonds of 2026, Series 1 (Forward Delivery). Proceeds of 2025, Series 3 will be used by the State to purchase certain outstanding G.O. bond maturities tendered by invited bondholders under a January 24th Invitation to Offer to Tender Bonds. Proceeds of 2026, Series 1 (Forward Delivery) will current refund certain outstanding G.O. bond maturities with a May 1, 2026 call date. A portion of the proceeds for each series will also fund related costs of issuance. Debt service savings is the State’s ultimate goal for both transactions.

In addition, KBRA affirmed the long-term AAA rating, with a Stable Outlook on outstanding G.O. Bonds; the short-term K1+ rating on the G.O. Commercial Paper (CP) Program and G.O. Extendible Municipal Commercial Paper (EMCP) Program; and the long-term AA+ rating with a Stable Outlook on outstanding Master Lease Certificates of Participation (COPs). The COPs long-term rating is derived from the State's long-term G.O. rating and an evaluation of factors discussed in KBRA's U.S. State Annual Appropriation Rating Methodology.

As of January 1, 2025, the State had $6.7 billion of general obligations outstanding, including fixed rate G.O. Bonds and variable rate EMCP Notes. General obligations, including G.O. Bonds, are a direct and general obligation of the State, secured by its full faith, credit and taxing power.

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