Moody's Investors Service Upgrades Whitefish Bay Schools' Credit Rating

Now that the Whitefish Bay School District has reached a settlement over its failed 2006 investment, the district's credit rating has been upgraded to the level it was at prior to the financial mishap.

In March, it recouped nearly all of its $1.2 million investment and was relieved from repaying $9.7 million in notes from as part of a legal settlement reached with Stifel Nicolaus, the district's former financial advisor.

Now that a settlement has been reached, Moody's Investors Service has upgraded the school district's credit rating from Aa3 to Aa2. The rating applies to $8.7 million of outstanding general obligation debt.

"This is another positive step for the district as a result of the legal settlement," Whitefish Bay Superintendent Mary Gavigan said.

The district's credit rating was downgraded because of a moral obligation pledge tied to the performance of the high-risk investments. Now, with the settlement, the district is released of the moral obligation to the OPEB Trust, which funds retirement benefits for district employees.

Even with the downgrade, Gavigan said the lower credit rating did not significantly impact the district.