Shorewood Maintains Solid Moody's Credit Rating

Shorewood’s credit rating remains at a solid Aa2, according to a report released earlier this week by Moody’s credit rating agency.

Moody’s, a company which analyzes and ranks the creditworthiness of borrowers, said the village's rating remained steady due to its "mature and affluent tax base in close proximity to the City of Milwaukee; sound financial operations characterized by healthy reserve levels; and manageable although increasing, debt profile with significant future capital borrowing planned.”

The rating means investors in village bonds can expect a high-quality investment with very low credit risk. As a result, the village can borrow with ease and keep property taxes stable.

Shorewood has been preparing to issue $9.5 million in bonds for sewer improvements to be completed in 2012 and 2013. Trustees are expected to consider whether to award the sale of those bonds on Monday.

The agency characterized the village’s strengths as having a favorable location within Milwaukee metropolitan area, above-average income indices, and strong financial operations characterized by healthy reserve levels.

However, it said Shorewood faces challenges including recent tax base valuation declines and the short-term advance from reserves this year, . 

The highest bond rating is a Aaa rating. An Aa2 is the third-highest Moody's ranking.