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Rating Action: Moody’s assigns Aa1 to MATC, WI GO notes; outlook stableGlobal Credit Research – 11 Feb 2022New York, February 11, 2022 — Moody’s Investors Service assigns a Aa1 rating to Milwaukee Area Technical College District, WI’s (MATC) $1.5 million General Obligation Promissory Notes, Series 2021-22I. Moody’s maintains a Aa1 rating on the district’s outstanding general obligation unlimited tax (GOULT) debt. Following the sale, the district will have about $103 million of GOULT debt outstanding. The outlook is stable.RATINGS RATIONALEThe Aa1 rating reflects the district’s strong financial position bolstered by recent operating surpluses which, coupled with proactive management, will provide a buffer against continued enrollment declines and other impacts stemming from the ongoing coronavirus pandemic. The rating further incorporates the district’s large and diverse tax base that includes the City of Milwaukee (A2 negative) and surrounding communities in Milwaukee County (Aa2 stable) and Ozaukee County (Aaa stable), modest resident income and wealth, limited revenue raising flexibility, a modest debt burden and moderate pension burden.RATING OUTLOOKThe stable outlook reflects our expectation that the district will maintain financial operations in line with the current rating through prudent management of expenditures, which is critical given the district’s limited revenue raising flexibility and trend of declining enrollment.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING- Strengthening of the tax base and resident income metrics- Enhanced budgetary flexibility that could arise from growing enrollment or relaxed statutory restrictions on raising local revenueFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING- Substantial weakening of the tax base or resident income levels- Narrowed financial reserves- Increased leverageLEGAL SECURITYThe district’s general obligation unlimited tax (GOULT) debt is supported by a designated property tax not limited by rate or amount.USE OF PROCEEDSProceeds will finance various building remodeling and improvement projects.PROFILEMilwaukee Area Technical College District is one of the largest technical college systems in Wisconsin (Aa1 stable), providing vocational education to residents of Milwaukee County, the majority of Ozaukee County, and small portions of Washington (Aaa) and Waukesha (Aaa stable) counties.METHODOLOGYThe principal methodology used in this rating was US Local Government General Obligation Debt published in January 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBM_1260094. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.REGULATORY DISCLOSURESFor further specification of Moody’s key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody’s Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody’s general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. 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